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US-Iran peace talks at impasse as Trump calls for reparations

Aug 11, 2026, 7:18am EDT
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People walk past an anti-U.S. billboard on a street in Tehran, Iran.
Majid Asgaripour/WANA via Reuters

US President Donald Trump rejected Iranian demands for war reparations and instead called for Tehran to pay compensation for the deaths of American soldiers, the latest sticking point in delicate peace negotiations. Trump said the US has “control of the Strait of Hormuz,” while Tehran says the waterway will remain closed until Washington meets its demands.

Other Gulf nations seem to buy Iran’s version of events: Officials told The Wall Street Journal that Tehran’s control over the strait is preferable to renewed fighting that poses risks to energy infrastructure. Iran is settling in for the long haul. Its supreme leader appointed six new figures to key positions, all of whom opposed the June memorandum of understanding with the US.

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