U.S. President Donald Trump on Wednesday said he could also demand reparations from Iran, further complicating an already tense situation in the Persian Gulf. The comments came as Iran warned that it could shut down the Strait of Hormuz, a vital waterway for international oil shipments, if it was not able to export its own oil due to U.S. sanctions. Trump made the remarks at a news conference with Finnish President Sauli Niinistö at the White House. "Iran has done a lot of bad things, and they could make a big payment, you know, for the things they've done," Trump said. The Strait of Hormuz has been a critical flashpoint in the escalating tensions between the United States and Iran. About 20% of the world's oil supply passes through the strait, which connects the Persian Gulf to the Gulf of Oman. Iran has repeatedly threatened to close the strait in response to the U.S. sanctions that were reimposed after Trump withdrew the United States from a 2015 nuclear deal with Iran. The threat was reiterated on Tuesday by Iranian President Hassan Rouhani, who said that Iran could close the strait if it was not allowed to sell its oil. "If we are not allowed to sell our oil, we will not be able to sell oil to anyone, and we will close the Strait of Hormuz," Rouhani said in a speech in Tehran. The comments by Trump and Rouhani came as oil prices jumped to a six-month high on Wednesday, fueled by the rising tensions in the region. Global benchmark Brent crude rose 4.3% to $67.54 a barrel, while U.S. West Texas Intermediate crude gained 4.2% to $56.23 a barrel. The U.S. Treasury Department on Tuesday imposed sanctions on two Iranian shipping companies and a number of vessels, in a move aimed at further tightening the screws on Iran's oil exports. The latest development raised concerns about a potential conflict in the region, with some analysts warning that a war between the United States and Iran could have serious consequences for the global economy. "This is a powder keg situation, and it could easily escalate into a bigger conflict," said Helima Croft, head of commodity strategy at RBC Capital Markets. "There are a lot of moving parts here, and it's hard to predict exactly how this will play out."
The former US President Donald Trump proposed to compensate Iran for war damages as a condition for reopening the Hormuz Strait agreement. He echoed this demand, saying "I too demand compensation." However, his statements have further exacerbated the outlook for the pact to reopen the Strait. Trump claimed that Iran's representatives had requested compensation for the injuries they sustained during the last five months of military clashes.
He added, "Now I will demand compensation for everyone Iran has killed or severely injured." He included "Ghasem Soleimani's commander" and "all those killed or severely injured in the various collisions" as well as the victims of the Cole incident, where 17 US soldiers died in Yemen in 2000. Trump also mentioned the tens of thousands of protesters who died in Iran in the past five years and the hundreds of thousands killed by Iran over the past 50 years.
He demanded compensation for the damage and loss of life in Lebanon, Syria, Yemen, and Gaza. His statements have cast doubt on the hope for reopening the Strait, complicating efforts to reopen it. Trump declared that the Strait was currently open, with the US Navy being the sole authority controlling it. He stated that the US blockade was perfect and selective, allowing only ships carrying goods he wanted.
He emphasized that Iran was facing a financial crisis and that the Strait was effectively under blockade, causing oil prices to soar since the start of the war last February. Iran is reportedly nearing an agreement with Oman on a new route through the Strait, but before that, the US has demanded six conditions, including war compensation, sanctions lifting, and cessation of military threats.
Iran's foreign ministry spokesman stated that while the joint statement is progressing well, there are still some technical issues to resolve, and all commitments under the existing understandings must be met to resolve the unstable situation around the Strait.
Written by urgent.news from Hankyoreh's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
