Iran Refuses to Reopen Strait of Hormuz Until US Pays War Compensation

Iran’s Revolutionary Guard has stated it will not reopen the Strait of Hormuz until the United States fulfils a list of demands, including paying compensation for war damage. The effective blockade of the vital energy passage has roiled markets and driven up prices, but US President Donald Trump said on Sunday he was taking a ‘calm’ approach towards Tehran.

Tehran insists on maintaining control of Hormuz after the war and wants to levy fees on shipping. It has repeatedly attacked vessels it accused of trying to avoid its preferred routes.

According to the Tasnim news agency, Iran’s Supreme National Security Council on Saturday set out conditions for reopening the strait. These include ending the war on all fronts, lifting the US blockade of Iranian ports, ending sanctions, unfreezing assets, and paying compensation for war damage. The terms reinforce a June agreement that included provisions for a USD 300 billion reconstruction fund for Iran.

Iran’s Revolutionary Guard said on Sunday their strategy is to maintain the blockade ‘until the enemy accepts all our conditions… the strait is now a battlefield for us, not just a waterway’.

‘We’re being calm,’ Trump said of his approach in an interview with Axios. ‘We’re only half-negotiating with them. We’re just watching Iran with very high inflation and the fact that they have no money.’ He added, ‘It will work. It’s like a game of chess.’

Iran is currently engaged in separate talks with Oman, a long-standing regional mediator with close ties to both Tehran and Washington, on managing the Strait of Hormuz. The discussions aim to establish a new legal framework and mechanism for shipping through the strait, including temporary navigation routes that could later form the basis for a permanent arrangement. However, Iranian officials stressed that reaching an understanding with Oman does not automatically guarantee the full reopening of the strait.