Trump adds reparations demand as Iran-Hormuz talks stall

President Donald Trump has introduced a new condition for any agreement with Iran, demanding that Tehran pay compensation for deaths and damage linked to conflicts and protests over the past five decades. The demand, made on Monday, directly responds to Iran's own conditions for a peace deal and is likely to complicate efforts to reopen the Strait of Hormuz.

Speaking at the White House, Trump said Iran should be held financially responsible for losses suffered by civilian demonstrators and US forces in the region. "We're going to ask for money for the damage they've done over a 50-year period," he said, adding that "if there's damages to be paid, I think Iran should pay those damages."

Trump also cited the deaths of 17 US sailors in the 2000 attack on the USS Cole in Yemen, an incident widely attributed to al Qaeda rather than Iran. He further called on Iran to compensate people in Lebanon, Syria, Yemen, and Gaza.

Iran had earlier indicated that talks with Oman on new shipping lanes through the Strait of Hormuz were progressing, but reiterated that the US must meet conditions including compensation, an end to sanctions, and a halt to military threats before the waterway could be reopened. The strait, which carried roughly a fifth of global oil and LNG before the conflict, has been effectively closed since the war began, pushing up energy prices.

The new US demand comes as Trump faces domestic pressure to end an unpopular war ahead of November midterm elections, with high fuel costs a key concern in rural constituencies. US military efforts, including a two-week campaign of strikes in July, have not dislodged Iran's control over the strait, despite Trump's repeated claim that the US Navy is in charge of the waterway.

A ceasefire agreed in June broke down after Washington reimposed a blockade on Iranian shipping in July, a move Tehran called a violation of the truce. Iran has since responded with missile and drone attacks on US allies in the region and on commercial vessels transiting the strait without its permission.

Oil prices settled 5% higher on Monday as the new demand dimmed hopes for a swift resolution.