US President Donald Trump has proposed financial compensation from Iran, claiming damages over a 50-year period, in response to Iran's condition that the reopening of the strategically crucial Strait of Hormuz be linked to war reparations and the lifting of sanctions. This proposal, made at a White House press conference on Monday, comes amid ongoing negotiations between Iran and Oman over the strait, which separates the two countries and is a major oil shipping route. Trump's demand for compensation includes costs associated with US troops in the region as well as civilian casualties in Iran, claiming thousands of deaths in recent months. The move risks complicating efforts to reopen the maritime passage, particularly since Iran has stated that it will not open the Strait of Hormuz unless Washington agrees to its conditions. Trump's proposal also extends to compensating families affected by attacks on US naval vessels and civilian casualties in countries like Lebanon, Syria, Yemen, and Gaza. The ongoing conflict, which escalated with the US-Israeli war on Iran in February, has seen Trump alternate between threats of escalation and claims of imminent peace deals. Charles Kupchan, a former special assistant to ex-US President Barack Obama, described Trump's remarks about requiring compensation as "banter," but emphasized that both sides have strong incentives to reach a deal. Iran is under pressure to export its oil, while the US does not want to face high gas prices ahead of the midterm elections, and there is also pressure on the Pentagon due to reports of low munitions stockpiles. Despite progress in talks between Iran and Oman, Iran has maintained that the US must meet its conditions for any agreement on the Strait of Hormuz. The strait has been effectively blocked since the war began, pushing up oil prices and inflation. The US Navy has claimed to have cleared mines from the waterway and redirected 55 commercial vessels since reinstating the blockade in July. However, shipping data suggests that traffic in the waterway has dropped sharply over the weekend, with crossings going down from 15 on Friday to 11 on Sunday.