Trump demands Iran pay reparations as Hormuz talks continue

US President Donald Trump has demanded that Iran pay reparations for those he claims were killed by Tehran's actions, after Iran set the reopening of the Strait of Hormuz on condition that the US pay war reparations.

Speaking to reporters at the White House on Monday, Trump said his administration would seek compensation for damages Iran caused over the “past 50 years,” in an apparent direct response to Tehran's demands.

Iran has said it will not reopen the Strait of Hormuz — through which roughly one-fifth of global crude oil and liquefied natural gas once passed before the US and Israeli war against it — unless Washington agrees to pay war reparations and end sanctions.

Iran's demands largely align with terms of an interim peace deal signed in June, but that agreement collapsed over disputes about control of the strait.

Negotiations between Iran and Oman over the waterway separating the two countries are ongoing, but Trump's latest demand risks complicating efforts to reopen the vital shipping route.

“They're asking for reparations, so to speak. Or they're asking for money for the damage that we've done. I said that's a good idea,” Trump told reporters. “We will ask for money for the damage they've done over the 50 years.”

According to Trump, the payment would cover deaths of US forces in the region as well as civilian protesters inside Iran. He claimed that 52,000 people have been killed in Iran over the past four months. Meanwhile, Tehran says about 3,117 people died in anti-government protests across the country in January, before the US and Israeli war began.

The US-based activist news agency HRANA reported in February that around 7,000 people had been killed, including 6,500 protesters.

Trump also said Tehran should compensate the families of 17 US sailors killed in the attack on the USS Cole destroyer in Yemen in October 2000, an incident attributed to al-Qaeda, not Iran.

“Also, regarding negotiations with Iran, Iran should be held responsible for the damage and deaths caused to the people of Lebanon, Syria, Yemen, and Gaza!” he wrote on Truth Social.

Since the US and Israeli war on Iran began on February 28, Trump has repeatedly swung between threats of escalation and statements that a peace deal is imminent. Last week, he threatened to strike Iran “very hard,” before walking that back and hinting a deal was near. Over the weekend, he said he was “tamping down” his approach to the conflict, suggesting he was willing to let economic pressure build rather than launch further military strikes.

Charles Kupchan, a former special assistant to ex-US President Barack Obama, described Trump's remarks about seeking reparations as “chatter” and argued both sides had strong incentives to reach a deal.

“Unfortunately, we're just seeing more of this kind of chatter, with neither Iran nor the Trump administration being serious,” he told Al Jazeera.

According to Kupchan, Iran cannot survive if it cannot export oil, and Trump does not want to head into midterm elections with high gasoline prices. He also noted the Pentagon is under pressure from reports that US ammunition stockpiles are running low.

Earlier, Iran said it was close to a final deal with Oman on new shipping lanes between the two countries through the Strait of Hormuz, but reiterated that the US must meet Tehran's conditions, including ending military threats.

The Strait of Hormuz has been nearly blocked since the war began, pushing oil prices and inflation higher.

Iranian Foreign Ministry spokesperson Esmaeil Baghaei said the talks with Oman were “progressing smoothly and constructively,” with agreement reached on shipping lane maps, while some technical issues remain unresolved.

Baghaei said the discussions also covered services typically tied to payments, such as maritime safety, environmental protection, marine services, and anti-crime measures.

According to him, continued US “hostile actions” in the Strait of Hormuz have made the route unsafe, and Tehran regards Washington's ongoing naval blockade of Iran's ports as an “act of aggression.”

US Central Command said Monday it had re-routed 55 commercial vessels since re-imposing the blockade in July and “neutralized” at least two ships. According to Windward, a maritime intelligence company, the blockade has brought Iranian oil exports from the Gulf's Kharg Island to a “complete halt.”

Trump on Monday described the blockade as a “steel wall” and said “the only force controlling the Strait of Hormuz right now is the US Navy.” He also claimed the route remains open and that US forces have cleared mines.

Meanwhile, maritime data firms said traffic on the route dropped sharply over the weekend, with MarineTraffic reporting transits falling from 15 on Friday to 11 on Saturday and 6 on Sunday.

Data showed 17 ships using a route designated by Iran, while 10 others followed a path classified as “unknown.”