Trump demands Iran pay compensation as hopes fade for Hormuz agreement

In a recent development, US President Donald Trump has added a new demand to negotiations aimed at reopening the Strait of Hormuz: Iran must compensate the nation for attacks, conflicts, and domestic repression, according to Trump. This comes after Iran reiterated that the US must compensate Tehran for damage caused by over five months of US and Israeli strikes in the region.

Trump instructed his representatives to incorporate this demand into any future talks. The president also called for compensation for victims of anti-government protests in Iran and for the USS Cole bombing in October 2000, an attack allegedly carried out by al-Qaeda. However, Trump did not provide further details on how to calculate compensation or who would receive it.

Iran claimed to be nearing an agreement with Oman regarding shipping lanes through the Strait of Hormuz, but stressed that reopening the waterway depended on several US concessions. Iran's Foreign Ministry spokesman, Esmaeil Baghaei, said Washington had to compensate Tehran for wartime damage, lift sanctions, withdraw US forces from the region, and release frozen Iranian assets.

If these conditions are not met, there would be no chance of restarting negotiations. The 14-point memorandum of understanding between the US and Iran, signed in June, aimed to reopen the Strait of Hormuz and address Iran's nuclear program. However, the agreement soon fell apart due to disagreements over interpreting the provisions governing the Strait.

Iran claims to be close to an agreement with Oman on transit routes for inbound and outbound vessels, which could tighten its control over the Strait. The closure of the Strait, a critical transit route for about one-fifth of global oil and liquefied natural gas supplies, has led to rising energy prices and global inflation.