Trump demands Iran pay reparations as Hormuz standoff deepens

Donald Trump said the United States would demand compensation from Iran for people killed in the war and during Iranian protests over the past 50 years, pushing a dispute over the Strait of Hormuz into sharper territory. His demand came as Tehran linked any reopening of the waterway to war reparations, sanctions relief and an end to military threats.

Iran said it was nearing a final pact with Oman on new shipping lanes through the strait, but insisted Washington still had to meet those other conditions before traffic could resume. U.S. officials were pressing Iran to publicly say attacks on ships would stop, even as Iranian and American messages continued to diverge over what a deal would require.

The stakes are unusually high because the Strait of Hormuz carries about a fifth of global oil and liquefied natural gas flows before the conflict, making it one of the world’s most consequential energy chokepoints. The waterway has been effectively blocked since U.S.-Israeli attacks on Iran on Feb. 28, 2026, a disruption that helped push oil prices higher and made every new sign of deadlock matter to fuel markets far beyond the Gulf.

Iran’s Revolutionary Guard said on Aug. 8 that reopening the strait did not depend on talks, a line that undercut hopes for a quick breakthrough. By Aug. 9 and 10, Iranian officials were still describing a final pact with Oman as within reach, while also holding to demands that the U.S. provide compensation and end pressure on Tehran.

The result is a standoff with clear consequences for shipping, military posture and energy costs. Oman remains part of the diplomatic track, but the gap between Trump’s demand for payment and Iran’s insistence on concessions has left the Strait of Hormuz trapped between negotiation and escalation, with no settled path for the tankers and LNG carriers that depend on it.