Trump demands Iranian reparations, dimming hopes for Hormuz deal

Hopes for a peace deal to reopen the Strait of Hormuz have dimmed after US President Donald Trump demanded Iran pay reparations for decades of damages. Trump's proposal, a response to Iran's conditions for a deal, includes compensation for civilians killed in protests and US forces.

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We’re going to ask for money for the damage they’ve done over a 50-year period.

"We're going to ask for money for the damage they've done over a 50-year period," Trump stated at the White House. He also suggested Iran should compensate families of US sailors killed in a 2000 attack blamed on al-Qaeda, and for damages in Lebanon, Syria, Yemen, and Gaza.

The escalating rhetoric has impacted oil prices, which settled 5% higher on Monday. The Strait of Hormuz, crucial for global energy transport, has been effectively blocked since the conflict began in February, contributing to rising oil prices and inflation.

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So if there’s damages to be paid, I think Iran should pay those damages.

Trump faces domestic pressure to end the war ahead of midterm elections, with high fuel prices being a significant concern for his voter base. Meanwhile, Iran had previously indicated it was nearing a pact with Oman to define new shipping lanes, but reiterated that US conditions, including sanctions relief, must be met before the strait reopens.

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What you’re seeing here is the beginning of a capitulation.