Trump Demands Iran Pay Compensation Amid Hormuz Talks
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- Trump demanded Iran pay compensation for people "killed and gravely wounded" in wars, attacks, and protests — a new condition not raised in prior talks, to be included in all future negotiations and including payments to families of those killed on the USS Cole in 2000.
- Iran said it was nearing a final pact with Oman on new shipping lanes through the Strait of Hormuz but required the U.S. to meet conditions including compensation, an end to sanctions, and an end to military threats before reopening the waterway.
- Oil and gas prices jumped after Iranian Foreign Ministry spokesman Esmaeil Baghaei tempered hopes of a swift deal, with Brent crude trading up 4.25% at 1720 GMT and Dutch and British front-month gas prices rising more than 10%.
- The Strait of Hormuz, through which roughly a fifth of global oil and liquefied natural gas flowed before the conflict, has been effectively blocked since U.S.-Israeli strikes on Iran on February 28.
- The U.S. reimposed a blockade on Iranian shipping in the Gulf in July, a move Tehran said violated the June ceasefire that had already broken down.
- Houthi rebels declared a naval blockade against Saudi Arabia in the Red Sea last month and attacked the port city of Mocha on Monday, killing seven people including military personnel and civilians, while air defenses intercepted 11 Houthi drones.
Why it matters: Trump is under pressure to end a deeply unpopular war ahead of November midterms, and both sides exchanging preconditions while the strait stays shut has already pushed Brent crude up 4.25% and European gas prices over 10%, squeezing importers and consumers — while Houthi attacks on the Red Sea open a second chokepoint the bilateral talks don't address.
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