Trump demands Iran pay compensation as hopes fade for Hormuz agreement

Donald Trump demanded that Iran compensate victims of attacks, conflicts, and domestic repression blamed on Tehran, bringing a new condition to negotiations for reopening the Strait of Hormuz. Iran insisted the US must compensate for damage caused by US and Israeli strikes over five months before the waterway can fully reopen. Trump instructed representatives to include this in future talks.

He also called for compensation for families of anti-government protesters killed in Iran and victims of the 2000 USS Cole bombing, which was attributed to al-Qaeda, not Iran. Trump gave no details on calculating compensation or presenting the demand to Tehran. He reiterated his demand for compensation, claiming the US controls the strait entirely and could escalate the conflict.

Iran said it was nearing an agreement with Oman on shipping lanes but insisted reopening the waterway depended on US concessions. Iran's foreign minister said until violations of a memorandum of understanding end and compensation is provided, negotiations cannot resume. The 14-point agreement in June aimed to reopen the Strait and address Iran's nuclear program, but disagreements over interpreting its provisions led to the ceasefire unraveling.

Iran's control over the Strait, a key transit route for one-fifth of global oil and LNG supplies, has driven up energy prices and global inflation. Trump suggested shifting focus to increasing economic pressure on Iran, indicating a move away from direct negotiations.