US President Donald Trump was asked by a reporter on Monday whether the renewed strikes on Iran mark a limited campaign or full-scale war.

In response the President said, "They are a failed nation... That doesn't mean we won't smack them. We will see what happens."

He noted that "we have the Strait of Hormuz in extremely good shape. We've been averaging 30 ships a night. That's a lot."

Trump stressed, "We went into Iran, and we are beating the hell out of them."

Asked who is currently in charge in Iran, the President replied, "They don't really know. In my opinion, they don’t know who their leader is."

Trump also criticized a reporter who asked him if he has ruled out using a nuclear weapon against Iran, and said her question was “stupid".

"I would never say that, but the answer is yes. There is no reason for it," Trump said, then added, "What a stupid question. Here they are. They are totally defeated militarily. I defeated them, and I should use a nuclear weapon on top of that? What a stupid question."

The comments came a day after a US strike on Iranian military targets on Larak Island that reportedly killed two people and wounded two others. The US strikes marked the first such strikes inside Iran since late July, when Trump paused a two-week US military campaign in the strategic waterway.

The Islamic Revolutionary Guard Corps (IRGC) threatened retaliation for the strike, and later fired missiles towards US bases in Jordan.

On Monday, Trump declared Iran a "failed" and "dead" nation in a post on Truth Social.

"Iran is officially a Failed Nation. IT IS DEAD! They have no Navy, they have no Air Force, they have no currency, they are not paying their soldiers or police, Inflation is at 300%, and their leadership is in total disarray and incapable of properly representing the country," Trump wrote.

"The only thing they have is FAKE NEWS from the USA, a willingness to kill their protesters (now over 100,000 people dead. They must be tried for war crimes against humanity!), and a good line of ‘BULLSH-.’," he added.

Meanwhile, Axios reported that Trump and senior administration officials are considering limited strikes against Iran in the Strait of Hormuz aimed at preventing Tehran from rebuilding military capabilities used to threaten ships in the strategic waterway.