Hopes for Hormuz deal fade as Trump demands Iranian reparations

US President Donald Trump on Monday responded to Iran's conditions for a peace deal by making his own demands, including that Iran compensate people killed in wars, attacks and protests – a rhetorical escalation that could further complicate efforts to reopen the Strait of Hormuz.

Trump's proposal, which had not previously been raised, came in response to Tehran's demands for compensation and an end to sanctions.

In a post on Truth Social, Trump said he had seen that "Representatives of the Islamic Republic of Iran are asking for compensation for the damage done to them during the last five month Military Conflict," but claimed that this had "never been mentioned" in any negotiations or meetings.

Calling it "an interesting idea," Trump said that he is "likewise demanding compensation from Iran, for all of the people that they have killed and gravely wounded with their roadside bombs and many conflicts."

Oil prices settled 5% higher on Monday after the demands dimmed prospects for a deal to reopen the strait.

Strait of Hormuz

Mohammad Bagher Zolghadr, secretary of Iran's Supreme National Security Council, said that the Strait of Hormuz will not be reopened until the United States "corrects its behavior," Iranian media reported Saturday.

Zolghadr noted that the reopening of the strait depends on the United States meeting a series of conditions: it must permanently end the war against Iran and its armed allies in the region; it must stop threatening Iran; it must lift the naval blockade of Iranian ports; it must compensate Iran for war damage; and it must lift sanctions and "unconditionally" release frozen or seized assets.

Besides, Iran earlier said it was nearing a final pact with Oman defining new shipping lanes between them through the Strait of Hormuz.

Iranian Foreign Ministry spokesperson Esmaeil Baghaei said earlier on Monday that talks with Oman were "progressing smoothly and constructively," with an agreement reached on a shipping route map, while some technical issues remained unresolved.

Baghaei said the discussions ​also covered services which would normally involve payment, such as safe navigation, environmental protection, maritime services and combating crime.

US officials have repeatedly ruled ​out any deal that would allow Tehran to charge access fees to the strait.

However, months of US military efforts, including a two-week campaign of strikes in July, have not broken Iran's grip on the strait, despite Trump's misleading claim, repeated on Monday, that the strait was open and "the only one that has control of the Strait of Hormuz right now is the United States Navy."

Personnel changes in Iran's senior leadership

Iran's Supreme Leader Mojtaba Khamenei has appointed six new military commanders for the country's armed forces, according to statements published on his website on Monday.

In separate decrees, he appointed Ali Abdollahi as chief of staff of the Iranian armed forces, Ahmad Vahidi as chief commander of the Islamic Revolutionary Guard Corps (IRGC), Ali Azmaei as commander of the IRGC's Navy, and Hossein Taeb as commander of the IRGC's Basij volunteer force, the statements said.

The supreme leader also appointed Kioumars Heydari as deputy chief of staff of the Iranian armed forces, and Mostafa Izadi as the IRGC's deputy commander, according to the statements.

Meanwhile, the latest appointments come amid growing attention to a flurry of personnel changes among Iran's senior leadership. Mojtaba Khamenei, the son of former Supreme Leader Ali Khamenei and Iran's new supreme leader since his selection in March, has not appeared in public since taking office. Iranian President Masoud Pezeshkian, however, said earlier Monday that Mojtaba is in perfect health.

Niu Xinchun, executive director of the China-Arab Research Institute at Ningxia University, said Mojtaba's recent public activities and personnel decisions appear aimed at demonstrating to the Iranian public and the international media that he remains actively engaged in governing the country and is in good health.

Commenting on Mojtaba's appointment of senior officials and his meeting with Pezeshkian, Niu said the supreme leader is also seeking to maintain a balance between the IRGC and the government.

"Ultimately, for Iran, the priority at this critical juncture is to preserve domestic unity and counter rumors from the outside world," Niu said.

(With input from agencies)