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Trump compensation demand puts Hormuz hopes on hold

Greta W. by Greta W.
10 August 2026
in News, World
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US President Donald Trump on Monday demanded Iran pay compensation for the people he said it had killed in wars, attacks and protests, in a move that will likely complicate efforts to reopen the Strait of Hormuz.

Trump’s proposal, which has not been raised before, was a response to Tehran’s demands for compensation and an end to sanctions. The Iranian demands were largely in line with the terms of a preliminary peace deal signed in June, which has since broken down.

Since the war began in February, Trump has repeatedly oscillated between threats of escalation and claims that a peace deal is imminent.

“We’re going to ask for money for the damage they’ve done over a 50-year period,” Trump said at the White House, saying payments would cover deaths among both civilian demonstrators and US forces in the region.

“So if there’s damages to be paid, I think Iran should pay those damages,” Trump said.

Trump also said Iran should compensate families of the 17 US sailors killed in an October 2000 attack in Yemen on the naval vessel USS Cole, which has been blamed on al-Qaeda, not Iran.

“Also, with respect to the Iran negotiations, Iran should be responsible for the damages and death caused to the people of Lebanon, Syria, Yemen, and Gaza!” Trump wrote in a Truth Social post.

Iran earlier said it was nearing a final pact with Oman defining new shipping lanes between them through the Strait of Hormuz but repeated that the US must meet conditions, including compensation and an end to sanctions and military threats before the key waterway is reopened.

The strait, through which about a fifth of global oil and liquefied natural gas flowed prior to the conflict, has been effectively blocked since the war began, pushing up oil prices and inflation.

Ironically, the agreement with Oman would give Tehran more leverage over the key waterway than it had before the war began.

Trump is under pressure to end a war that is deeply unpopular at home ahead of mid-term elections in November, and high fuel prices are a top issue in rural areas that have backed him in the past.

“What you’re seeing here is the beginning of a capitulation,” Democratic US Representative Bill Keating said on CNN. “This is reality. It’s sinking in.”

Earlier on Monday, Iranian Foreign Ministry spokesman Esmaeil Baqaei said talks with Oman were “progressing smoothly and constructively,” with an agreement reached on a shipping route map, while some technical issues remained unresolved.

Baqaei said the discussions also covered services which would normally involve payment, such as safe navigation, environmental protection, maritime services and combating crime.

US officials have repeatedly ruled out any deal that would allow Tehran to charge fees for access to the strait.

But months of US military efforts, including a two-week campaign of strikes in July, have not broken Iran’s grip on the strait.

Washington and Tehran agreed to a ceasefire in June, but the US reimposed a blockade on Iranian shipping in July, a move that Tehran said violated the truce.

Iran has been striking back with missiles and drones against Washington’s allies in the region, while also targeting commercial ships transiting the strait without its permission. (Reuters)

Tags: World
Greta W.

Greta W.

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