Trump demands Iran pay compensation for deaths as Hormuz deal hopes fade

The strait, through which about a fifth of global oil and liquefied natural gas flowed prior to the conflict, has been effectively blocked since the U.S.-Israeli attacks on Iran on February 28, pushing up oil prices and inflation.

Trump, who has said the attacks on Iran were aimed at keeping the Islamic Republic from developing nuclear weapons and degrading its ability to threaten the region, is under pressure to end a war that is deeply unpopular at home ahead of midterm elections in November.

Washington and Tehran agreed to a ceasefire in June, but the U.S. reimposed a blockade on Iranian shipping in the Gulf in July, a move that Tehran said violated the truce, which by then had already broken down.

Iran has been striking back with missiles and drones against Washington's allies in the region, while also targeting commercial ships transiting the strait without its permission.