President Donald Trump declared Tuesday that the United States now exercises total control over the Strait of Hormuz and demanded Iran pay billions in reparations for past attacks on shipping. The declaration drew an immediate rebuke from Tehran and underscored how far the two nations remain from any agreement to de-escalate regional hostilities.
Total control claim
Trump made the statement during a briefing with defense officials at the White House. He said the U.S. Navy and allied forces had secured the strait, through which about 20 percent of global oil passes. "We have total control of Hormuz," Trump said. "The United States will not tolerate any disruption. And Iran will pay reparations for every act of aggression against our ships and our allies."
National Security Advisor Mike Waltz said the administration would present a reparations package to the United Nations and would impose additional sanctions if Iran refused to comply. "This is not a negotiation. This is a demand rooted in international law and the freedom of navigation," Waltz said. He declined to specify the exact amount Washington seeks, but he said it would cover the costs of damaged vessels, heightened insurance premiums, and the deployment of American forces to the region.
U.S. officials said the carrier strike group led by the USS Abraham Lincoln has been repositioned inside the strait, along with Navy destroyers and coastal patrol ships. Air Force fighters have been conducting daily sorties over the approaches to the strait. The Pentagon declined to give exact numbers but said the deployment represents the largest concentration of naval power in the region since the 2003 invasion of Iraq.
Iran's counter demands
Iranian Foreign Minister Abbas Araghchi rejected Trump's claim, saying the strait remains under Iranian sovereignty under the United Nations Convention on the Law of the Sea. "The United States is an occupying force in our waters," Araghchi said in a televised address. "Iran will not pay a single dollar. Instead, the United States must compensate Iran for the economic damage caused by years of sanctions and for the assassination of General Qasem Soleimani."
Araghchi also demanded the release of Iranian oil tankers seized by U.S. forces in recent weeks. "If Washington wants to reduce tensions, it must stop its piracy and return our assets," he said. Iran's armed forces have conducted their own exercises near the strait, including the deployment of fast attack boats and anti-ship missiles. On Monday, Iran's navy commander, Rear Admiral Shahram Irani, said any American attempt to block Iranian shipping would be met with a devastating response.
Both sides talk de-escalation
Despite the harsh rhetoric, both governments have signaled a willingness to reduce hostilities. In a phone call with Qatari mediators, Trump said he was open to a new agreement if Iran first met his reparations demand. The White House said Trump also assured the emir of Qatar that the United States would not seek regime change in Iran.
Iran's president, Masoud Pezeshkian, told parliament that Iran accepts the offer of dialogue but will not negotiate under duress. "We are willing to talk when America respects our rights," Pezeshkian said. "Threats and extortion are not a basis for diplomacy."
Analysts say the gap between the two positions is vast. "The Americans are demanding a form of surrender," said Fatima Al Shamsi, a Gulf security expert at the Emirates Center for Strategic Studies. "The Iranians are demanding the Americans leave the region entirely. There is no common ground yet."
Other experts point to the economic stakes. Oil prices have swung wildly since the standoff began, with Brent crude rising above $110 a barrel on Tuesday before settling at $104. The global shipping industry is considering rerouting tankers around the Cape of Good Hope, which would add weeks to delivery times and increase costs.
For now, the standoff continues. Both sides talk of winding down hostilities, but their public positions leave almost no room for compromise. The next few weeks will determine whether Washington and Tehran can find an off ramp, or whether the Strait of Hormuz becomes the flashpoint for a broader conflict.
