Washington, Aug 11:
US President Donald Trump has rejected Iran’s demand for $300 billion in compensation for damage caused by US and Israeli strikes during the recent conflict, saying Tehran should instead pay compensation for people killed in attacks linked to Iran.
Trump’s remarks came amid growing efforts to negotiate the terms for de-escalation and the reopening of the Strait of Hormuz, a vital global energy corridor. He said Iran’s demand for compensation would not be accepted and indicated that the issue of compensation for those killed or injured in attacks linked to Tehran would be raised in future negotiations.
Iran, meanwhile, has placed several demands on the table as conditions for fully reopening the strategic waterway. Tehran is seeking the release of up to $100 billion in frozen Iranian assets, an end to economic sanctions and military threats, besides compensation for the damage caused by US and Israeli strikes during the conflict.
The competing compensation claims underline the difficult road ahead for any diplomatic settlement. Iran argues that the strikes caused extensive damage and loss of life and wants financial compensation as part of any broader agreement. Trump, however, has taken the opposite position, insisting that Iran should bear financial responsibility for deaths and injuries attributed to attacks linked to Tehran.
The dispute comes against the backdrop of heightened tensions surrounding the Strait of Hormuz, through which a significant share of the world’s oil and gas shipments passes. Any prolonged disruption to the waterway could have serious consequences for global energy supplies and prices.
With both sides attaching major financial, security and political conditions to a possible settlement, negotiations are likely to face significant hurdles. The question of compensation — and who should ultimately bear the financial cost of the conflict — could emerge as one of the most contentious issues in efforts to restore stability in the region.