Prospects for reopening the Strait of Hormuz have dimmed following US President Donald Trump’s demand that Iran pay compensation for deaths and damages linked to decades of conflict, attacks, and protests. This demand emerged in response to Tehran’s conditions aimed at reaching a broader peace agreement.
Iran had sought compensation and the lifting of US sanctions as prerequisites for reopening the strategic waterway. Foreign Minister Abbas Araqchi noted that Iran and Oman were close to finalizing a new shipping arrangement through the strait. However, Trump’s call for reparations during a White House address on Monday introduced a new obstacle.
Trump emphasized that Iran should compensate those affected over a 50-year period, referencing civilian and US military deaths in the region. This demand was not part of earlier negotiations and threatens to further complicate efforts to revive a deal between Washington and Tehran.
Iran’s conditions have largely reflected aspects of a preliminary peace agreement reached in June, which has since collapsed amid ongoing tensions. Since the conflict began in February, Trump has alternated between warnings of escalation and hopeful assertions of a potential agreement.
The Strait of Hormuz, a vital passage for a significant share of global oil supplies, has remained mostly closed during the conflict, disrupting energy markets and international shipping. Oil prices rose approximately 5% on Monday as the latest US demands lowered expectations of a swift resolution to restore shipping through the waterway.
In a notable development, Trump cited the crackdown on protests in Iran during late 2025 and 2026, claiming that some 52,000 protesters had been killed as of six weeks ago. While Iranian opposition and exile groups have claimed tens of thousands of deaths, the US-based Human Rights Activists News Agency reported around 7,000 fatalities, including 6,500 protesters.
Trump had encouraged protesters to overthrow the Iranian government when the war began with US and Israeli airstrikes in February. Rights organizations report that the Iranian government has continued suppressing dissent since then.
Additionally, Trump stated that Iran should compensate families of the 17 US sailors killed in the October 2000 attack on the USS Cole in Yemen, an incident attributed to al Qaeda rather than Iran. He also asserted in a Truth Social post that Iran should be held accountable for damages and deaths in Lebanon, Syria, Yemen, and Gaza.
Earlier, Iran indicated it was nearing a final agreement with Oman to define new shipping lanes through the Strait of Hormuz. However, Tehran reiterated that the US must meet its conditions, including compensation, the lifting of sanctions, and the cessation of military threats, before the waterway can be reopened.
Before the conflict, approximately one-fifth of global oil and liquefied natural gas passed through the strait, which has effectively been blocked since the war’s onset, contributing to higher oil prices and inflation worldwide.
Ironically, the proposed agreement with Oman would grant Tehran greater control over the strait than before the conflict began. Meanwhile, Trump faces mounting pressure to end the war, which remains highly unpopular domestically ahead of November’s midterm elections. Elevated fuel prices are a significant concern in rural areas that have traditionally supported him.
Democratic Representative Bill Keating remarked that the situation signals the beginning of a US capitulation, acknowledging the harsh realities sinking in.
On Monday, Iranian Foreign Ministry spokesman Esmaeil Baghaei described talks with Oman as progressing smoothly and constructively, with an agreement reached on a shipping route map, though some technical details remain unresolved. Discussions also covered paid services such as safe navigation, environmental protection, maritime services, and crime prevention.
US officials have consistently rejected any deal allowing Tehran to charge fees for passage through the strait. Despite extensive US military efforts, including a two-week strike campaign in July, Iran has maintained control over the strait, contradicting Trump’s repeated claims that the US Navy exclusively controls it.
Washington and Tehran agreed to a ceasefire in June, but the US reimposed a blockade on Iranian shipping in July, which Tehran viewed as a violation of the truce. In response, Iran has launched missile and drone attacks against US allies in the region and targeted commercial vessels transiting the strait without its consent.
