Donald Trump has escalated tensions by rejecting Iran’s demand for war reparations and instead insisting that Tehran must pay compensation for decades of alleged attacks, killings, and repression.

His counter-demand, which includes restitution for US casualties, Iranian protesters, and regional conflicts, risks further complicating negotiations over reopening the Strait of Hormuz.

US President Donald Trump on Monday dismissed Iran’s demand for financial compensation over damages caused during the US-Israeli military operations in the country. He argued that Tehran must instead be held accountable for casualties resulting from its own actions.

Posting on Truth Social, Trump described Iran’s demand as an “interesting idea” but declared that he would present a counter-demand in future diplomatic negotiations.

Trump stated that Iran must pay compensation for casualties and injuries linked to its actions, including the October 2000 USS Cole bombing, which killed 17 US sailors. He also referenced Iran’s late military commander Qassem Soleimani, alleging that Tehran’s leadership was responsible for conflicts that led to thousands of fatalities. Soleimani was killed in a US drone strike in Baghdad in 2020 authorised by Trump.

Extending his demand, Trump insisted that Iran should compensate families of protesters allegedly killed by the regime over the past five decades. He claimed that 52,000 people had lost their lives in the last five months alone, a figure far higher than estimates from rights groups. He confirmed that American negotiators had been instructed to integrate these conditions into all upcoming talks with Tehran.

Iran, meanwhile, has linked its demand for war reparations to conditions for reopening the Strait of Hormuz, lifting US sanctions, and ending naval blockades. The strategically vital waterway, through which a fifth of global oil once flowed, has been heavily disrupted by sporadic missile and drone attacks. According to The Wall Street Journal, these disruptions have severely impacted commercial maritime traffic and rattled global markets.

Despite Trump’s repeated claims that the maritime corridor remains open, shipping activity has been heavily constrained. He has also threatened a “massive bombing campaign” against Tehran, though reports suggest Iranian authorities are prepared for a prolonged conflict.

The Islamic Revolutionary Guard Corps (IRGC) declared that the Strait of Hormuz would remain closed until Washington agreed to all of Tehran’s conditions, including financial restitution.

Iranian security chief Mohammad Bagher Zolghadr reiterated calls for an end to “war and aggression” against Iran and its allies in Lebanon, Palestine, Yemen, and Iraq. The IRGC further emphasised that the maritime transit route would continue to serve as a “theatre of war” until the US met all of Iran’s stipulations.

Trump’s counter-demand has drawn attention to decades of alleged Iranian involvement in regional conflicts. He argued that Tehran should also be held responsible for damages and deaths in Lebanon, Syria, Yemen, and Gaza. His stance has been described as a direct response to Iran’s insistence that US reparations are a precondition for peace. Analysts warn that these demands could push a resolution further out of reach, with oil prices already rising amid fading hopes of a deal.

The situation underscores the deepening impasse between Washington and Tehran. While Iran insists on reparations and sovereignty over the Strait of Hormuz, Trump’s counter-claims highlight a widening gulf that complicates prospects for peace. With shipping traffic dwindling and global markets unsettled, the standoff continues to pose significant risks to international stability.

ANI