Trump raises compensation demand in Iran peace talks

US President Donald Trump has said Washington will demand compensation from Iran as part of any future peace settlement, responding to Tehran’s call for reparations over damage caused during five months of war.

Trump said the demand would cover Americans killed or seriously wounded in attacks and conflicts that Washington has blamed on Iran or Iran-backed groups over several decades. He also called for payments to families of Iranian protesters killed by the authorities and later widened his claim to include damage and deaths in Lebanon, Syria, Yemen and Gaza.

The move adds another contentious condition to negotiations aimed at ending the conflict and restoring normal navigation through the Strait of Hormuz. Talks have stalled as Washington and Tehran exchange increasingly expansive demands over reparations, sanctions, frozen assets, security arrangements and access to one of the world’s most important energy corridors.

Trump said on Truth Social that Iran’s request for compensation was an “interesting idea” and argued that the United States should make its own claims in return. He instructed US representatives to place the compensation demand firmly into future negotiations with Tehran.

Iran has made compensation for wartime destruction part of a broader package of conditions. Tehran is also seeking an end to the US blockade of its ports, the lifting of economic sanctions and the release of frozen Iranian assets before normal traffic through the Strait of Hormuz is restored.

Iranian Foreign Ministry spokesperson Esmail Baghaei has said Washington must stop what Tehran describes as illegal and destructive actions and make amends for the damage caused during the conflict. Trump’s counter-demand signals that reparations could become one of the hardest issues to reconcile if formal negotiations move towards a comprehensive settlement.

The US government has for decades accused Tehran and Iran-backed organisations of involvement in attacks that killed American personnel. Washington has linked Iran-supported militants to the deaths and injuries of hundreds of Americans, including US troops killed in Iraq between 2003 and 2011. Tehran has rejected many US accusations about its responsibility for regional violence and has presented its alliances with armed groups as part of a deterrence strategy against Israel and the United States.

Trump’s language went beyond claims involving US casualties. He said compensation should also be provided to families of Iranian demonstrators killed during decades of unrest and government crackdowns. His statements framed Iran’s domestic human-rights record as a potential element of negotiations that had primarily centred on the war, Tehran’s nuclear programme and the Strait of Hormuz.

The compensation dispute has emerged as the Trump administration tries to avoid another major round of military action. Trump said earlier this month that the United States would hold off on fresh strikes if an agreement could be reached quickly to address Iran’s nuclear activities and reopen the strait. He said Iran and other Middle Eastern governments had requested additional time to complete an arrangement.

Iran has largely restricted passage through the Strait of Hormuz during the war. Before hostilities, roughly one-fifth of globally traded oil passed through the waterway, making its closure a major source of pressure on energy markets and governments dependent on Gulf exports.

Markets have reacted sharply to signs that diplomacy is losing momentum. Brent crude reached $88 a barrel on Tuesday, while US crude climbed to $82.45, their highest levels since July 31. Both contracts had advanced about 5% during the previous session as the US-Iran negotiating impasse deepened.

Higher energy costs are also complicating Trump’s domestic political calculations ahead of the November midterm elections. Rising fuel prices could add to inflationary pressures at a time when investors are closely watching US consumer-price data and the outlook for interest rates.

The diplomatic process remains tied to wider disputes over Iran’s nuclear programme and the security architecture of the Gulf. Tehran denies seeking a nuclear weapon, while Washington and Israel have insisted that any settlement must prevent Iran from rebuilding capabilities they regard as a proliferation threat.