Iran-U.S. Updates: Trump claims control of Strait of Hormuz, demands compensation from Iran as stalemate deepens

U.S.-Iran Conflict Updates: Oil Prices Rise as Hormuz Transit Remains Restricted and Regional Incidents Continue

The conflict between the United States and Iran began on February 28, 2026, when U.S. and Israeli forces conducted strikes on Iranian targets that resulted in the death of Supreme Leader Ali Khamenei. President Trump stated on August 10, 2026, that the United States controls the Strait of Hormuz through a naval blockade and that Iran should provide compensation for past attacks attributed to Tehran. Iranian officials have separately demanded compensation for damage from the conflict as a condition for reopening the strait to commercial traffic. Oil prices increased more than 5 percent on August 10 amid uncertainty over when the waterway would reopen.

The price of Brent crude rose above $87 per barrel following the statements, extending gains from the prior week. Market analysts cited the absence of new agreements on Hormuz access as the primary factor. The U.S. position on compensation was outlined in a post on the Truth Social platform, referencing specific past incidents including the 2000 attack on the USS Cole and other attacks attributed to Iranian-backed groups. Iranian representatives have maintained their own compensation claims tied to the current conflict.

Red Sea Vessel Incident Reported

The United Kingdom Maritime Trade Operations agency stated on August 11 that a cargo vessel in the southern Red Sea near the Bab el-Mandeb Strait was struck by an unknown projectile, resulting in casualties. A separate alert from Greek maritime firm Marisks reported that a Saudi-owned commercial vessel had been struck by a missile in the same area, with initial accounts indicating three crew fatalities involving Pakistani and Indonesian nationals. It remains unclear whether the two reports describe the same event. No group has claimed responsibility for the strike.

Lebanon Reports Strike in Nabatieh

Lebanon’s health ministry reported that an Israeli strike on August 11 in the southern city of Nabatieh wounded two people and damaged an ambulance belonging to the Risala Scouts Association. The ministry described the second strike on rescue personnel as a violation of international humanitarian law. Lebanon’s civil defence agency separately stated that its personnel responding to a bushfire in the same region were targeted by an Israeli drone strike, though no injuries occurred in that incident. Hezbollah initiated rocket fire into Israel in March 2026 in support of Iran. Israel conducted subsequent air strikes and a ground operation. A U.S.-Iran memorandum of understanding signed in June and a subsequent framework agreement between Lebanon and Israel reduced the intensity of fighting, though intermittent strikes have continued. The agreements call for Hezbollah disarmament, Israeli withdrawal from southern Lebanon, and deployment of Lebanese army units. Hezbollah has rejected the disarmament provisions.

Houthi Attacks in Yemen Resume

Yemen’s military reported that Houthi forces launched missiles and drones on August 11 against the government-controlled port city of Mokha on the Red Sea coast and against positions in the central province of Marib. The Houthis had conducted similar strikes the previous week on Marib, Hadramout, and Mokha, resulting in dozens of reported deaths including government troops and civilians. Mokha serves as a primary port for the internationally recognized Yemeni government after renovations intended to bypass the Houthi-controlled port of Hodeida. The attacks coincide with the effective closure of the Strait of Hormuz, increasing reliance on the Bab el-Mandeb Strait for oil shipments from Saudi Arabia. Saudi Arabia supports the Yemeni government. The renewed Houthi operations have raised concerns about a return to full-scale civil war after the 2022 truce.

Oil Market Reaction and Analyst Comments

Brent crude traded at $87.72 per barrel and West Texas Intermediate at $82.13 per barrel on August 11, following the 5 percent gain recorded the previous day. Prices had fluctuated between $72 and $102 in recent weeks depending on negotiation developments. Analysts at Bank of New Zealand and Quintex Intel attributed the upward pressure to the lack of progress on Hormuz reopening and noted that both the United States and Iran have sought to limit the other’s oil exports through the current restrictions. No new talks were announced on August 11.

Security Measures During NATO Summit Travel

U.S. officials confirmed that President Trump transferred from Air Force One to a different aircraft in Turkey at the conclusion of the NATO summit in late July after intelligence indicated a credible Iranian or proxy plan to target the presidential plane with a missile. The transfer occurred using an airport catering vehicle to maintain operational security. The president had publicly referred to himself as a primary target during the summit period.

Compensation Positions Outlined

President Trump stated that any future negotiations on the Strait of Hormuz should include Iranian compensation for deaths and injuries attributed to Iranian-backed actions over multiple decades, specifically naming the USS Cole attack and other combat incidents. Iranian officials have conditioned reopening of the strait on compensation for losses incurred since February 28. Both sets of demands were presented as prerequisites rather than outcomes of talks.

The combination of the Hormuz restrictions, Red Sea incidents, and renewed fighting in Yemen has kept shipping costs elevated and maintained pressure on global oil supply routes. No agreements resolving the transit issues were reported as of August 11.