August 11, 2026
4 mins read

Trump turns up heat as Hormuz deal teeters

Hormuz reopening hopes dim as Trump demands Iranian compensation, while Tehran insists wider US concessions are needed before unrestricted shipping can resume….reports Asian Lite News Desk

Hopes of a breakthrough to reopen the Strait of Hormuz have weakened after US President Donald Trump demanded that Iran pay compensation for deaths and damage he says resulted from Iranian actions over decades, adding a new obstacle to already difficult negotiations.

Trump’s demand came as Iran and Oman moved closer to an agreement on arrangements for the safe passage of ships through the strategically vital waterway. However, Tehran has made clear that agreeing on shipping routes with Oman would not necessarily mean the Strait would be fully reopened.

Iranian officials have said the wider question of reopening Hormuz remains linked to demands directed at the United States, including an end to military action and sanctions and compensation for damage caused during the conflict. 

Trump responded by introducing his own compensation demand, saying the United States would seek payment from Iran for what he described as damage caused over a 50-year period.

“We’re going to ask for money for the damage they’ve done over a 50-year period,” Trump told reporters at the White House.

He said the proposed compensation would include people killed or wounded in conflicts and attacks, as well as victims of protests in Iran.

The demand represents a significant rhetorical escalation at a time when negotiators are attempting to establish arrangements that could restore maritime traffic through one of the world’s most important energy corridors.

Caption: (Photo: Xinhua via IANS)

Trump also kept the possibility of further US military action against Iran open.

Asked what would happen following the latest talks, he twice told reporters: “You’ll find out.” When asked whether a major escalation remained possible, Trump said the United States had the capability to take such action.

The US president also claimed that the United States Navy had complete control of the Strait of Hormuz and described the waterway as effectively open for vessels travelling through it, while saying ships were not being permitted to travel into Iran.

Trump said US forces had carried out mine-sweeping operations in the strait and claimed American forces had “100 per cent” control of the waterway. He warned, however, that Iran could still attempt to disrupt shipping by placing mines.

His claims about the extent of US control and Iran’s economic condition were not independently verified in the reporting.

The latest developments have added uncertainty to efforts to restore normal commercial shipping through Hormuz. Iran and Oman have been negotiating new arrangements covering shipping routes, with Iranian officials saying discussions on a safe transit route were approaching their final stage. 

But Tehran has distinguished between reaching an understanding with Oman on navigation and fully reopening the strait. Iranian officials have indicated that broader conditions involving Washington would need to be addressed before unrestricted passage could resume.

That distinction is crucial for international energy markets. The Strait of Hormuz links the Persian Gulf with the Gulf of Oman and is a major route for global oil and gas shipments. Prolonged disruption can raise shipping costs, delay deliveries and increase energy prices.

Oil prices rose sharply after Trump’s latest remarks, with crude settling around 5 per cent higher on Monday as markets reacted to the fading prospect of a rapid reopening of the waterway. 

The uncertainty is particularly significant for Gulf economies and international shipping companies, which have been closely monitoring developments around the strait.

Recent shipping data also suggested that maritime traffic remained weak despite signs of progress in the Iran-Oman talks. Reported crossings fell over the weekend, underlining the continuing caution among commercial operators.

The negotiations have therefore produced a complicated picture: Iran and Oman appear close to agreeing practical arrangements for shipping, but the broader political conditions required for a full reopening remain unresolved.

Trump’s new compensation demand could make that gap wider.

The US president’s comments also came amid continuing disagreements over the terms of a wider peace arrangement. Tehran has demanded concessions from Washington, while the Trump administration has continued to insist on its own conditions.

Trump said Iran had asked for compensation for damage caused by the United States and suggested that Tehran should instead compensate people he said had been harmed by Iranian actions.

The two sides therefore appear to be approaching negotiations from sharply different positions, raising questions over whether an agreement on Hormuz can be separated from the wider US-Iran confrontation.

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