Washington, Aug 2026 : US President Donald Trump has kept open the possibility of a major military escalation against Iran, while rejecting Tehran’s reported demand for compensation and asserting that the US Navy has complete control over the strategically vital Strait of Hormuz.
Asked what could follow the latest round of talks with Iran, Trump twice told reporters at the White House: “You’ll find out.” When questioned specifically about whether a massive military escalation remained an option, Trump said the United States had the capability to pursue such action if it chose to do so.
“Well we have that — certainly that ability if we want to do that, yeah. You’ll find out,” Trump said, without providing details about the military options under consideration or the status of negotiations with Tehran.
Trump also revealed that Iran had sought compensation for damage allegedly caused by the United States. He rejected the demand, arguing instead that Tehran should compensate people and families he said had suffered from Iranian actions over the past five decades.
“They asked for, uh, reparations, you might say, or they asked for money for the damage that we’ve done,” Trump said.
“I said, that’s a good idea. Well, we’re going to ask for money for the damage they’ve done over a 50 year period,” he added.
Trump referred to people he said had been killed or wounded by Iran, as well as families of protesters who he claimed were killed during unrest in the country. He argued that if compensation was to be paid for damages, Iran should bear the cost.
“If there’s damages to be paid, I think Iran should pay those damages,” Trump said.
The President did not provide evidence or detailed figures to support his claims about casualties or potential compensation. He also offered no specifics on how the United States might pursue such payments.
Trump Claims US Navy Controls Strait of Hormuz
Trump separately claimed that the Strait of Hormuz remains open for shipping but asserted that the US Navy currently exercises complete control over passage through the strategic waterway.
“The only one that has control of the Strait of Hormuz right now is the United States Navy,” he said.
Trump described the US presence in the waterway as an “infallible” blockade and said vessels were being permitted to pass, although ships were not being allowed to travel to Iran.
“So it’s actually open now. We do not let them go into Iran. They’re not admitted into the strait to go to Iran. But it’s open for others,” he said.
Trump acknowledged that Iran could still attempt to disrupt maritime traffic by laying mines in the waterway. He claimed US forces had conducted mine-sweeping operations across the strait.
“We’ve mine swept the entire strait,” Trump said, adding that the United States “control[s] the strait 100 percent.”
Trump Says Iran Facing Severe Economic Pressure
The President also claimed that Iran was financially exhausted, struggling to pay its military personnel and facing inflation of more than 300 per cent. The information provided in the report did not include independent confirmation of these claims.
“They’re broke, they have no money,” Trump said, accusing Iran of destabilising the Middle East for five decades and claiming that Iranian actions had resulted in hundreds of thousands of deaths and injuries.
“They’ve been the bully of the Middle East,” Trump said. “And now they’re paying a price.”
The Strait of Hormuz, which connects the Persian Gulf with the Gulf of Oman, is one of the world’s most important energy corridors. A prolonged disruption to shipping through the waterway could affect global oil supplies, energy prices and international shipping costs.
Trump also briefly addressed Israel and Israeli Prime Minister Benjamin Netanyahu’s rejection of a proposed agreement with Hamas. Trump said he had posted his response on Truth Social but described the relationship with Israel as “very good.”
His remarks on Iran come as diplomatic efforts remain closely watched amid heightened tensions, with the possibility of further military action continuing to loom over the region.
