Trump Demands Compensation From Iran as Hormuz Dispute Deepens

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WASHINGTON — President Donald Trump says the United States will seek compensation from Iran for people killed or wounded in conflicts involving Tehran, adding a new demand to fragile negotiations over the future of the Strait of Hormuz.

Trump’s demand came after Iran outlined conditions for fully reopening the strategic waterway, including compensation for damage caused during the conflict, an end to U.S. military threats and sanctions relief.

The dispute has complicated efforts to restore normal shipping through the Strait, one of the world’s most important energy routes.

Trump said Monday that he had instructed U.S. representatives to seek compensation from Iran for people he said had been killed or seriously wounded as a result of Iranian actions over the years. Reuters reported that Trump expanded the demand beyond the current conflict to include deaths and injuries associated with earlier attacks and regional conflicts.

The conflicting positions highlight the difficulty of reaching a broader agreement between Washington and Tehran.

Iran has sought compensation for damage caused by the conflic

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Trump, meanwhile, has rejected the idea that the United States should compensate Iran and has instead demanded payments from Tehran.

Any prolonged disruption can affect energy prices well beyond the Middle East because oil is traded globally. Higher crude prices can increase transportation and manufacturing costs and make it more difficult for central banks to control inflation.

Asian economies are particularly exposed because countries including China, India, Japan and South Korea depend heavily on energy shipments through the region.

For the United States and its allies, keeping the waterway open is also a security concern. Commercial vessels need predictable access to the route, while governments want to prevent the conflict from developing into a wider regional confrontation.

The latest disagreement follows months of military confrontation between the United States and Iran. The conflict has caused casualties and significant damage and has also affected energy markets and shipping.

Iran has argued that it should receive compensation for losses suffered during the conflict. Trump has taken the opposite position, saying Iran should compensate victims of Iranian actions.

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For Iran, the strait provides important strategic leverage because of its location along one of the world’s most important energy corridors.

For Washington, ensuring freedom of navigation is central to its broader regional strategy and its effort to protect international commerce.

The United States and Iran now face a difficult diplomatic calculation. Any agreement would need to address competing demands over compensation, sanctions, military activity and the rules governing shipping through Hormuz.

The latest crisis has placed the waterway at the center of negotiations over a broader settlement between Washington and Tehran. Iran’s demands for compensation and sanctions relief have collided with Trump’s demand that Tehran compensate people affected by Iranian attacks and conflicts.

Trump said he had instructed U.S. representatives to seek compensation from Iran for people he said were killed or seriously wounded by Iranian actions. The demand adds another obstacle to negotiations over reopening the Strait of Hormuz.

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