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Hopes for Hormuz deal fade as Trump demands Iranian reparations

11 August 2026
in Business
Reading Time: 4 mins read
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Hopes for Hormuz deal fade as Trump demands Iranian reparations
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Smoke rises after reported Iranian missile attacks, following strikes by the United States and Israel against Iran, in Manama, Bahrain, February 28, 2026. — REUTERS/STRINGER TPX IMAGES OF THE DAY

WASHINGTON — US President Donald Trump on Monday responded to Iran’s conditions for a peace deal with his own demands that Iran pay compensation for people killed in wars, attacks and protests, in a rhetorical escalation likely to complicate efforts to reopen the Strait of Hormuz.

Mr. Trump’s proposal, which had not been raised before, was a response to Tehran’s demands for compensation and an end to sanctions. The Iranian demands were largely in line with the terms of a preliminary peace deal signed in June, which has since broken down.

Since the war began in February, Mr. Trump has repeatedly oscillated between threats of escalation and claims that a peace deal is imminent.

“We’re going to ask for money for the damage they’ve done over a 50-year period,” Mr. Trump said at the White House, saying payments would cover deaths among both civilian demonstrators and US forces in the region.

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