US-Iran war Highlights: Iran sets conditions for reopening Hormuz, demands compensation from US and sanctions relief

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Yemen's Houthis have resumed attacks on the Red Sea port city of Mocha, according to a Yemeni military spokesperson cited by Reuters.

Houthi-affiliated Al Masirah TV aired footage showing the launch of several ballistic missiles and drones.

Houthi military spokesperson Yahya Saree said the attacks targeted Saudi troop concentrations and weapons depots.

Saree made the claim in a post on Telegram.

The attacks come amid escalating regional tensions involving the Houthis and Saudi Arabia.

US President Donald Trump signalled that he was prepared to rely on economic pressure rather than order additional military strikes against Iran, even as Tehran continued to demand major concessions before agreeing to reopen the Strait of Hormuz.

“We are low-keying it,” Trump told Axios, according to the news outlet.

"In light of the resignation of Mohammad Bagher Zolghadr from his position as secretary of the Supreme National Security Council and his appointment to new functions, President Masoud Pezeshkian has named Mohsen Rezaei as the head of this body," Iran presidency spokesman Mehdi Tabatabaei said on X.

Israeli Prime Minister Benjamin Netanyahu rejected the Trump-led 15-point Gaza proposal endorsed by Hamas.

Netanyahu said Israeli forces would not withdraw from Gaza until Hamas is genuinely and fully disarmed.

Israel insists that Hamas must surrender its weapons before any meaningful military withdrawal.

Netanyahu said some of President Donald Trump's ideas were acceptable to Israel, while others were not.

Hamas agreed to the 15-point proposal in late July, creating a potential path toward a Gaza ceasefire and political settlement.

Iran's Islamic Revolutionary Guard Corps (IRGC) said that the Strait of Hormuz would remain closed until the United States meets a series of demands, including compensation for damage caused by the war.

Iranian security chief Mohammad Bagher Zolghadr outlined several conditions for reopening the strategic waterway, according to the Tasnim news agency.

The demands include an end to what Tehran calls US "war and aggression" against Iran and its allies in Lebanon, Palestine, Yemen and Iraq. Iran has also demanded:

— An end to the US counterblockade of Iranian ports

— Removal of US sanctions

— Release of frozen Iranian assets

— Compensation for wartime damage

US President Donald Trump has been preparing to claim victory in the Iran war if Tehran fully reopens the Strait of Hormuz, according to The Wall Street Journal.

Trump has privately indicated to senior aides that he could walk away from the conflict without securing a new nuclear agreement with Iran.

Reopening the strategic waterway and restoring free navigation appears to have emerged as a central US goal for ending the conflict.

Tehran has made its toughest demands yet for reopening the Strait of Hormuz, making Trump's proposed endgame more difficult.

Iran is reportedly demanding billions of dollars in payments from the United States as part of any arrangement to restore shipping.

Tehran is also seeking the removal of American forces from the region.

Iran also wants Washington to lift its naval blockade as a condition for allowing unrestricted traffic through the strait.

Iran demands compensation, sanctions relief

Tehran has linked the reopening of the Strait of Hormuz to several demands.

Iranian Foreign Minister Abbas Araqchi said Iran wants compensation from the US for the widespread attacks carried out against the country. Mohammad Baqer Zolqadr, secretary of Iran’s top national security body, also called for an end to US threats and military action against Iran and its regional allies.

Iran has additionally demanded the lifting of the blockade and US sanctions and the release of Iranian assets.

The US has said its actions would be tied to Iran fulfilling commitments under any agreement.

A US official told Reuters that once a deal is announced to restore unrestricted commercial shipping, Washington would lift its blockade of Iranian ports.

Iranian Foreign Minister Abbas Araqchi said the agreement with Oman would define new shipping lanes to be used once the United States fulfils Tehran’s conditions and the strait is reopened.

Araqchi said Iran and the US are not currently holding direct talks and that Tehran would not enter negotiations as long as Washington violates an interim agreement reached in June. However, messages between the two sides are being exchanged through intermediaries.

Pezeshkian won Iran’s presidential election in July 2024 after former President Ebrahim Raisi was killed in a helicopter crash.

He was formally appointed president by Ayatollah Ali Khamenei on July 28, 2024, and took his oath before parliament on July 30.

Iran’s semi-official Mehr News agency released an undated video showing Khamenei apparently in good health.

The footage was released amid the reports about his alleged critical condition and appeared aimed at countering speculation over his health.

However, because the video was undated, it could not independently establish when the footage was recorded.

Iranian President Masoud Pezeshkian has reportedly met Supreme Leader Mojtaba Khamenei to discuss Iran’s military and economic affairs.

Talks covered public livelihood needs, the ongoing US-Israeli war, military developments, resource allocation and management of the rial, foreign currency and energy spending.

The two leaders also discussed ways to strengthen economic engagement with foreign partners amid mounting pressure on Iran.

A Farsi-language X account attributed to Mojtaba Khamenei also reported the meeting, saying it took place as Pezeshkian began his third year as president.

The meeting comes days after Israeli media reported that Mojtaba Khamenei was in an “extremely critical condition” and had reportedly been taken to a hospital.

Israel has rejected US President Donald Trump's Board of Peace 15-point plan for Gaza, and will not withdraw until Hamas fully disarms, Prime Minister Benjamin Netanyahu said on Sunday.

Iran will release footage of Supreme Leader Mojtaba Khamenei "among the people" and meeting armed forces commanders in the future, a Basij official said, according to judiciary-linked Mizan, in an apparent effort to counter speculation about his health.

Yemen's Iran-aligned Houthis said they attacked Saudi Aramco's Jazan refinery with a drone on Sunday, two days after Saudi Arabia signed a defence pact with Turkey and Pakistan amid heightened regional tensions.

Yemen's Iran-aligned Houthis said they attacked Saudi Aramco's Jazan refinery with a drone on Sunday. Saudi Arabia's energy ministry said a fire at the refinery was later extinguished, with no injuries reported.

Araqchi said a shipping agreement between Iran and Oman for the Strait of Hormuz is in its "final stages", but stressed that it would not by itself reopen the waterway. The deal would outline new shipping lanes once US conditions are met.

Iranian Foreign Minister Abbas Araqchi said Tehran and Washington are not holding talks and will not resume negotiations while the US breaches an interim deal signed in June, Reuters reported. He said messages are being exchanged through intermediaries.

The Strait of Hormuz, crucial to global supplies of oil and natural gas, was considered an international waterway before the war.

But Iran and Oman are working to finalize a temporary deal that would reopen the strait with ships entering the strait through a route close to Iran and exiting through a route close to Oman, according to two people familiar with the talks who spoke on condition of anonymity because they were not authorized to speak publicly.

Ships would cross the strait without paying fees or tolls during the interim period, AP reported.

Mahmoud Mardawi, a Hamas official, says Israel has issued “dozens of demolition and displacement orders against more than 100 Palestinian families in al-Walaja” northwest of Bethlehem in the occupied West Bank, Al Jazeera reported.