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Washington: Efforts to reduce tensions between America and Iran and reopen the strategic Strait of Hormuz have suffered a major setback. US President Donald Trump has demanded compensation from Iran for deaths caused in wars, attacks and demonstrations. Trump made it clear that this demand will be part of future talks with Iran.
This demand of Trump's has come in response to Iran's conditions under which Tehran has demanded compensation for war damages, lifting of sanctions, ending military pressure and release of seized Iranian assets. Iran has linked these conditions to the complete opening of the Strait of Hormuz.
Trump has said that the US will seek compensation from Iran for the deaths and injuries for which it holds Tehran responsible. He also mentioned the deaths and damage in the US as well as in Lebanon, Syria, Yemen and Gaza. According to Trump, his demand will be kept in all future talks.
Earlier, Iran had demanded compensation from America for the losses incurred in the recent war. The demands of both sides for compensation from each other have made the already difficult negotiations more complicated.
Iran says that America will have to accept its major demands before completely opening the Strait of Hormuz. These include compensation for war damages, lifting sanctions and ending military pressure. Tehran has also demanded the release of seized assets.
On the other hand, negotiations are progressing between Iran and Oman on a new arrangement for the movement of ships through the strait. Both countries are said to be close to finalising new shipping routes and arrangements for safe movement.
At present there is no clear answer to this. Despite progress on a shipping arrangement between Iran and Oman, major political differences remain between the US and Iran. Trump's new compensation demand has created another obstacle in the way of the agreement.
Trump claims that America has control over the strait and has also talked about clearing it of Iranian mines. However, Iran still maintains its conditions regarding resumption of normal navigation.
The direct impact of the deadlock in US-Iran talks is visible on the global oil market. On Tuesday, Brent crude reached around 88 dollars per barrel, while US WTI crude was trading at around 82.45 dollars per barrel. There is concern in the market that if the movement of oil through Hormuz is disrupted for a long time, the pressure on global supply may increase.
The Strait of Hormuz is one of the world's most important energy trade routes. Prolonged disruption here could impact oil prices as well as shipping and insurance costs.
According to Iran's Foreign Ministry, talks with Oman regarding the safe movement of ships and the new route have advanced significantly. Technical issues related to routes, maritime services and safe navigation are being discussed between the two sides.
However, the biggest question is still about America's role. Iran's stance is that the decision to completely open the strait will depend on America's military action and its other conditions. In such a situation, Trump's new compensation demand may make negotiations more difficult in the coming days.