Iran says Hormuz reopens only after war damages are compensated
Tehran's conditions and a new US deadline raise the risk of a prolonged chokepoint that could keep oil and gas prices elevated and complicate any ceasefire push.
Apr 5, 2026, 9:25 PM EDT
Why it matters: The Strait of Hormus carries about one‑fifth of global oil and roughly 20% of LNG trade. A prolonged closure or a new toll regime would tighten supplies, spike prices, and complicate any ceasefire push.
The latest:
- Iran says Hormus will reopen only after war damages are compensated under a new legal order, with transit fees helping cover costs. - The IRGC navy says the strait will never return to its prior state, especially for the US and Israel, and Tehran is planning a toll system. - Donald Trump extended a deadline to Tuesday evening (Washington time; 2:00 a.m. CET Wednesday) to avoid attacks on Iranian power plants and bridges. - Iran’s UN mission accused Trump of threatening essential civilian infrastructure and urged immediate action to prevent war crimes. - Kuwait reported heavy damage to oil and petrochemical facilities from Iranian drones, plus damage to power and desalination plants. - Bahrain said a drone strike ignited a storage tank fire that was extinguished; UAE authorities said a strike near Khor Fakkan injured four people from falling debris. - Israel’s air defenses activated after new Iranian missile launches; a Tel Aviv station was damaged by shrapnel and a Haifa apartment building was hit, leaving three people missing.
The big picture:
- Hormus is the only sea link from the Persian Gulf to the open ocean and a critical chokepoint for global energy flows. - Iran has repeatedly warned ships not to pass and has targeted vessels in the region, though some traffic still transits. - The war has already disrupted shipping and pushed energy prices higher, with downstream effects on fuel and food costs.
The tension:
- The US and Israel have struck Iranian targets since late February; Iran has retaliated with missiles and drones across the Gulf and toward Israel. - Trump’s ultimatums and threats to power plants and bridges clash with Iran’s demand for compensation and control over the strait. - NATO partners have declined a war‑time escort mission for Hormus, while Germany signaled readiness to join a post‑conflict security effort.
What to watch:
- Whether the Tuesday deadline passes without a US strike on Iranian energy infrastructure. - Any formal ceasefire or 45‑day truce talks that could unlock Hormus traffic. - Further Iranian strikes on Gulf energy assets and Israeli cities, and any escalation in US/Israeli responses.
The bottom line: Iran is tying Hormus’ reopening to compensation and control, while the US pushes a hard deadline — a standoff that could keep the chokepoint shut and markets on edge.