Donald Trump launched into a scathing attack on former President Barack Obama as he defended his proposed Iran peace deal at the G7 Summit. 

Trump claimed the Iranians described Obama as a 'stupid son of a b****' when he was in negotiations with them in 2015, as he insisted the deal he struck is far better.

The president made the claim in a tense meeting with Egyptian President Abdel Fattah el-Sisi, where Trump fumed about the Middle East crisis and blamed Obama for trying to 'bribe his way out' of the region's issues. 

'He gave him $1.7 billion in cash, green cash from banks into a Boeing 757 and flew it into Iran,' Trump said of the 2015 deal.

'He tried to bribe his way out. I didn't do that. Nobody mentions that… And you know what the Iranians did?

'They laughed at Obama. And they said, 'He's a stupid son of a b****.' 

The attack came after Obama criticized Trump's deal making with Iran in an interview with Good Morning America this week, where he said Trump's war has not resulted in any better outcomes than he reached over a decade ago.

'It is doubtful that any agreement that arises is going to be significantly different, or in a significant improvement from the deal that we had in the first place, and had worked for a long stretch of time before we, the United States, pulled out of it,' Obama said. 

Trump also used his meeting with the Egyptian leader at the G7 conference in France to target his enemies back home. 

He said Democrats had created a 'made-up' affordability crisis to hurt his popularity ahead of the midterm elections in November.

Describing the financial struggles of Americans as a 'hoax', he said: 'We have a very hot stock market.

'We have a very… started to be a very low oil price, and that's going to have a huge impact on affordability caused by the Democrats.

'The Democrats have caused so many problems, you have no idea.' 

As Fattah el-Sisi appeared uncomfortable in the on-camera meeting next to him, Trump continued his complaints as he said the media had pressured him about the economy from his first day back in the White House.

'I'm in the office for one day, and I had my first news conference, and they said, 'Affordability, sir, affordability, what are you doing about it?' he said.

'I said, 'I've just been here one day.’ They're the ones that cause affordability... It's just another con job. They made up the word affordability, but we're bringing prices down a lot, and they're coming down fast.'