Hopes for peace deal fades as Trump demands Iran pay compensation

US President Donald Trump has pushed for Iran to pay compensation for civilian and military casualties stemming from wars, attacks, and demonstrations over the past 50 years. The demand comes amid talks with Oman aimed at reopening the strategic Strait of Hormuz, a waterway through which a fifth of global oil and liquefied natural gas supplies pass.

Iran has set conditions for a peace deal, including reparations, sanctions relief, and assurances against further military threats. Trump stated that Iran should compensate for damages caused in Lebanon, Syria, Yemen, and Gaza, as well as the 2025-2026 crackdown on protests, where he claimed 52,000 protesters had been killed. However, rights groups report a lower death toll of around 7,000.

Despite Iran's claims of progress in talks with Oman, US officials reject any agreement that would allow Tehran to charge fees for accessing the strait, which has remained closed since the war began. Trump maintains US Navy control over the waterway, but months of US military operations have failed to break Iran's grip. The situation is exacerbating political pressure on Trump as voters head to the polls in November, with rising fuel prices being a major concern.