Trump demands reparations from Iran and hopes of reopening Hormuz cool

Washington and Tehran clash over reparations as hope fades for a deal to reopen the Strait of Hormuz, the route that carried about a fifth of the world’s oil before the war. US President Donald Trump demanded this Monday that Iran pay compensation “for the damage they have caused for 50 years”, and assured that his country has “total control” of the strait.

What each side demands

Trump declared in the Oval Office that compensation could go to US soldiers killed or wounded in the Middle East and to the families of protesters who died in this year’s crackdown. On his Truth Social network, he announced he had “instructed my representatives to include it firmly in any future negotiation”.

On the other side, Iran’s Supreme National Security Council conditions the reopening of the strait on Washington lifting the naval blockade and sanctions, withdrawing its forces from the region, paying war reparations and releasing frozen Iranian assets, in addition to ceasing attacks on its allies. On Tuesday, Iranian foreign ministry spokesman Esmaeil Baqaei called US sanctions a “compulsive addiction”.

“The strait is open”

Trump said the US Navy swept the area’s mines and that the US is “the only one controlling the Strait of Hormuz right now”. The reality on the ground is more tense: the British maritime agency UKMTO reported Tuesday morning an incident between a tanker and military forces in the Gulf of Oman, near the strait.

According to CNBC, analyst Lloyd Chan of MUFG Bank warns that Brent remains well above pre-conflict levels, and that while a full regional war is not the base scenario, periodic flare-ups remain possible.

The standoff continues

Iran insists the strait will remain closed while the US blocks its ports, and rules out that talks with Oman over a transport arrangement imply a full reopening. Trump, for his part, has signaled he prefers to let economic pressure do its work rather than launch new military attacks.

The key figure: 50 years. The period of “damage” for which Trump demands compensation from Iran, in a diplomatic duel keeping the oil market on edge.