U.S. President Donald Trump on Monday scoffed at Iran’s demand for war reparations, instead demanding compensation from Tehran for alleged attacks and for the families of Iranian protesters. This imperial posturing comes even as U.S. sanctions continue to inflict severe economic hardships on the Iranian populace. Iran’s president acknowledged widespread suffering among the working class, citing impacts on "people's livelihoods, the state of the market, employment, people's housing."
The U.S. government blames Iran-backed militants for the deaths of 241 U.S. military personnel in Beirut 43 years ago and at least 603 U.S. troops in Iraq between 2003 and 2011. Trump stated he has instructed his representatives to include these demands "firmly into any, and all, future negotiations." Meanwhile, Iran's Foreign Ministry spokesperson Esmail Baghaei declared that the Strait of Hormuz will remain closed until the U.S. ends its economic blockade, lifts sanctions, releases frozen assets, and pays compensation for war damage. Baghaei asserted, "It is up to the U.S. side to stop and make amends for its illegal and destructive actions." The closure of the Strait, a critical artery for one-fifth of the world's traded oil, keeps energy prices a central issue in U.S. politics ahead of November's midterm elections.
Imperial Demands and Economic Warfare
President Masoud Pezeshkian of Iran met with Supreme Leader Ayatollah Mojtaba Khamenei, discussing the severe economic strain imposed by U.S. sanctions. Pezeshkian told state television that they addressed "people’s livelihoods, the state of the market, employment, people’s housing," alongside "problems that are now being created as a result of the (U.S.) sanctions." Khamenei, appointed in March of the same year after a U.S.-Israeli strike killed his father, emphasized "unity and cohesion" to counter "the enemy’s plans... aimed at creating division." This internal call for unity underscores the pressure on the Iranian state as it navigates an economic war that directly impacts its working class.
Mohsen Rezaei, a military adviser to the new supreme leader, was appointed to head Iran’s powerful Supreme National Security Council on Sunday. Rezaei, who commanded Iran’s paramilitary Revolutionary Guard from 1981 to 1997, a period including Iran’s 1980s war with Iraq, last week threatened American forces with "serious risks and casualties" if the U.S. did not lift its blockade of Iranian ports. The Institute for the Study of War, a U.S.-based think tank, noted Rezaei's willingness to negotiate for "maximalist aims, including control of the Strait of Hormuz," while remaining "unwilling to present any Iranian concessions." This demonstrates the state's commitment to protecting its strategic assets against imperial encroachment.
The State's Role in Occupation and Conflict
In the occupied West Bank, Israel’s military declared the Christian-majority town of Taybeh a closed military zone. This "new tactic" aims to prevent Israeli settlers and other non-residents from entering the area, which has endured months of arson, vandalism, and settler incursions onto private and village property. The army stated Palestinian residents and journalists would be permitted entry unless deemed a threat, with troops authorized to detain suspects and disperse gatherings. This move follows a period where the army and police have struggled to maintain order, during which at least 87 Palestinians have been killed by Israeli settlers or soldiers in 2026, according to the Ramallah-based Palestinian Health Ministry. The state's intervention here is not to protect the dispossessed, but to manage the contradictions of its own occupation, which has led to widespread violence against Palestinians.
Further south, Yemen’s Iran-backed Houthi rebels attacked Mokha, a Red Sea port town controlled by government forces, on Sunday. The assault killed seven people and injured 30, including four military personnel and three civilians, according to Yemen’s Defense Ministry. Clashes persisted near Taiz on Monday, where the Houthi group reported a 13-year-old child killed by artillery shelling and another child injured. This marks one of the largest waves of Houthi strikes on Yemeni military positions and Saudi-backed government areas since a four-year-old truce, highlighting the ongoing proxy wars that devastate the region and its working people, further fueled by renewed focus on the Red Sea and Bab el-Mandeb Strait as alternatives to the Strait of Hormuz.