Trump demands Iran compensation, Hormuz deal dims
Analysis based on 70 articles · First reported Jul 28, 2026 · Last updated Aug 11, 2026
Oil prices surged over 4% as hopes for a quick reopening of the Strait of Hormuz faded, with Brent crude rising above $87 a barrel. The prolonged closure of the strait continues to pressure global energy markets and inflation, with European diesel futures jumping over 10% amid refinery attacks.
On August 11, 2026, U.S. President Donald Trump escalated the standoff with Iran by demanding that Tehran pay compensation for American deaths and injuries caused by Iranian-backed attacks over decades, as well as for Iranian protesters killed. This came in response to Iran's insistence on U.S. reparations for war damage as a precondition for reopening the Strait of Hormuz. Trump's new demands, which he said would be included in all future negotiations, further complicated efforts to reach a deal to reopen the strategic waterway, through which about one-fifth of global oil and LNG flowed before the conflict. Iran, meanwhile, continued talks with Oman on new shipping lanes but reiterated that the U.S. must lift its blockade, end sanctions, and pay compensation. The hardening of positions on both sides dimmed hopes for an imminent agreement, pushing Brent crude up over 4% to above $87 a barrel. In parallel, Iran's supreme leader Mojtaba Khamenei made senior military appointments, including naming Ali Abdollahi Aliabadi as chief of staff and Ahmad Vahidi as IRGC commander, while Mohsen Rezaee was appointed to head the Iran — Supreme National Security Council. The Houthis in Yemen claimed an attack on Saudi Aramco's Jazan refinery, and Israel declared a closed military zone in Palestine — Tayyiba in the West Bank.
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