New US Iran conditions emerge in Hormuz talks, what could be the outcome?

The plan was to stop the war, but at the negotiating table, the United States and Iran appear to have instead opened even larger ledgers of demands against each other. After five months of war, a narrow waterway is now at the center of the talks: the Strait of Hormuz. Whether this route will reopen is now tied to compensation, blockades, sanctions, military withdrawals and even responsibility for much older conflicts. The United States wants Iran to pay compensation for various deaths and damages. Iran, meanwhile, is demanding that US threats and attacks first stop, the naval blockade and sanctions be lifted, and seized assets be returned. As a result, the waterway that carried nearly one fifth of the world’s oil and liquefied natural gas before the war has now become the biggest obstacle on the path to peace. Oil prices are also rising sharply amid the tensions surrounding the talks.

The United States and Iran have exchanged new demands over the conditions for reopening the Strait of Hormuz. This has made the possibility of ending the five month war and reaching a broader peace agreement even more uncertain.

The United States has said it is taking part in direct talks. Iran, however, says it is holding direct discussions only with Oman. Tehran has also proposed sharing responsibility with Oman for managing the future of the strategically important waterway. Before the United States and Israel began the war against Iran in late February, one fifth of the world’s oil and liquefied natural gas was transported through the strait.

US President Donald Trump said Monday that he would seek compensation from Iran for deaths and injuries resulting from decades of conflict and attacks. Last week, Iran also demanded compensation for the war and announced several new conditions. Tehran said it would not reopen the Strait of Hormuz until Washington met its political and economic demands.

Experts said the chances of broader peace talks between the two countries resuming remain slim until the issue of the Strait of Hormuz is resolved.

Tawhid Asadi, reporting from Tehran for Al Jazeera, said, ‘The two sides have moved further apart. The gap between them is growing steadily when it comes to the possibility of reaching a diplomatic agreement.’

These recent developments could further complicate talks between Tehran and Oman over the future management of the Strait of Hormuz. Both Iran and the United States had previously expressed interest in reaching an agreement to end the war.

What did Trump say about ‘compensation’?

Trump said Iran must pay compensation for people who were killed or seriously injured as a result of Iran’s actions.

Speaking to reporters at the White House, Trump said, ‘We will seek money for the damage they have caused over 50 years. So, if there is damage for which compensation is due, I think Iran should be the one to pay that compensation.’

In a post on his social media platform Truth Social, the US president later said Iran should also compensate the families of the 17 US sailors killed in the October 2000 attack on the USS Cole in Yemen. However, Al Qaeda, not Iran, was held responsible for that attack.

Trump also demanded compensation for the families of Iranian protesters who were killed during antigovernment demonstrations in January.

Trump wrote, ‘In addition, in dealing with Iran, Iran must also be held responsible for the damage and deaths of people in Lebanon, Syria, Yemen and Gaza.’

Trump raised these conditions after Iran demanded that the United States compensate Tehran for the damage caused by US and Israeli attacks during this year’s war.

However, the US president’s hardline position appeared to conflict with remarks by his Vice President JD Vance. Vance said Saturday that he was optimistic about reaching an agreement with Iran and that such a deal would be good for the American people.

Vance also said Iran had told the United States that it had ‘no plans’ to impose tariffs in the Strait of Hormuz. This was one of the key points of disagreement between the two sides.

Oil prices rose more than 5 percent Monday following Trump’s new demands. Prices increased again Tuesday as hopes of reaching an agreement faded.

What are Iran’s new demands?

Iran has said that reopening the Strait of Hormuz, which was effectively closed to shipping shortly after the war began, depends on several steps by Washington. These include accepting a number of new conditions.

Iran’s Supreme National Security Council announced six new conditions Saturday. They are:

• The United States must stop threats and insulting statements against Iran.
• Attacks against Iran and its allies in Lebanon, Palestine, Yemen and Iraq must end permanently.
• The United States must lift its naval blockade of Iranian ports and withdraw its naval and air forces from around Iran.
• The United States must pay compensation for damage caused during what Iran calls two ‘imposed wars.’ These include the war that began on February 28 and the 12 day war with Israel in June 2025, in which the United States also participated.
• US sanctions must be lifted.
• Iran’s seized assets must be released without conditions.

Meanwhile, Iran has said talks with Oman on a new shipping arrangement in the Strait of Hormuz have progressed. The new arrangement would establish new routes for vessels. Iranian Foreign Minister Abbas Araghchi said the talks are now at the ‘final stage.’

Araghchi again made Iran’s position clear Sunday, saying there are no direct talks taking place with the United States. However, the two sides are believed to be exchanging messages through intermediaries.

What does this mean for peace talks?

According to analyst Negar Mortazavi, Iran and the United States are taking increasingly tougher positions in their discussions over the Strait of Hormuz. This has raised doubts about the prospects for diplomatic progress toward a broader peace agreement. Experts said discussions on a wider agreement are unlikely to resume until the two sides resolve the issue of the Strait of Hormuz and how it will be managed.

Mortazavi, a senior fellow at the International Policy Center, told Al Jazeera, ‘It seems that both sides are putting forward maximum demands even before serious negotiations begin.’

She said the latest US position is particularly sensitive.

Mortazavi added, ‘Trump’s new demands are particularly problematic. Because they include issues beyond ending the current conflict. If compensation for protests and other past events becomes a genuine US condition for an agreement rather than simply a negotiating position, it could become extremely difficult for Tehran to accept a deal.’

She also said Tehran is seeking several significant guarantees. Iran wants not only assurances that the war will end, but also ‘guarantees that the conflict will not resume later and economic relief after the war.’

Tehran had previously said it had little trust in US negotiators because the United States had attacked Iran three times while previous talks were still underway.

According to Tehran based political analyst Hossein Royvaran, resolving the deadlock over the Strait of Hormuz will ultimately depend on which side can withstand pressure for longer.

He told Al Jazeera, ‘The equation now is: closure versus blockade. But the question is, who will cry out first?’

Royvaran added, ‘At this moment, America is suffering because of gasoline prices, inflation and the rising cost of living at home. There is deep dissatisfaction inside America over this war and its social consequences.’

He added, ‘The same applies to Iran. However, Iran has some arguments that are acceptable to society. That is, this war was imposed on Iran and Iran had no other option but to defend itself.’