President Donald Trump applied a new condition to talks with Iran on Monday, saying he would require compensation from the country for past misdeeds after Tehran said US compensation was required to reopen the Strait of Hormuz.
Iran said an agreement with Oman to manage the waterway would not be enough to reopen it unless the US meets the list of conditions. The back-and-forth suggested the two sides were no closer to reaching an agreement that would reopen the Strait of Hormuz.
Instead, the fresh requirements appeared to diminish prospects for a quick deal, despite optimism last week an agreement was near.
At this juncture, catch up on recent headlines on what’s happening in the region:
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In announcing six senior appointments, Iran’s Supreme Leader Mojtaba Khamenei reshaped the country’s military leadership, which included naming Ali Abdollahi as armed forces chief of staff, Ahmad Vahidi as commander-in-chief of the Islamic Revolutionary Guard Corps (IRGC) and Ali Azmaei as IRGC Navy commander. Remember, Khamenei has not been seen in public since becoming leader following the killing of his father, Ayatollah Ali Khamenei, in a late February 2026 strike.
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The US imposed the eighth round of sanctions on Iran this year. Foreign Ministry spokesperson Esmaeil Baqaei said it will not buckle under the sanctions that only undermine the chances of a diplomatic resolution to the war.
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Trump told reporters the US has swept the Strait of Hormuz for mines and the US Navy has full control of the waterway. However, shipping traffic through the strategic waterway has remained “subdued” over the past week and “weakened further into the weekend,” maritime intelligence firm Kpler said Monday.
CNN’s Christina Macfarlane spoke with Dina Esfandiary, Middle East Lead at Bloomberg Economics, about the latest US-Iran developments:

Trump: Washington in “low-key” negotiations with Iran

• Another Trump team peace initiative in the Middle East appears to have hit the rocks as well. After several rounds of talks between Israel and Lebanon, which began in April, an Israeli official tells CNN there are no dates in the diary for further meetings.
• An Iranian photojournalist has been sentenced to 15 years in prison for allegedly acting in the interests of Israel and the US after authorities searched her home and seized electronic devices, according to a US-based human rights group.
CNN’s Mohammed Tawfeeq, Eyad Kourdi, Alejandra Jaramillo, Aida Karimi, Andrew Carey, Dana Karni, Kevin Liptak and Billy Stockwell contributed to this post.