The US has rejected Iranian demands for cash reparations to end the current conflict, with Secretary of State Marco Rubio describing Tehran’s requests for “pallets of cash” as totally unrealistic. Speaking Tuesday after G7 meetings in Paris, Rubio stated that the Trump administration would not provide payments to the Iranian government, arguing instead that Iran should pay reparations for its role in destabilizing the Middle East.
The diplomatic standoff occurs as Iran and Russia warn against reported US plans to expand the Caspian Sea trade blockade. Tehran claims Washington’s “Task Force Iron Gate” intends to restrict goods entering Iran through its land borders and the Caspian corridor. Iranian Foreign Minister Abbas Araghchi condemned the US strategy of economic isolation as inhumane and delusional, comparing the sanctions pressure to the US embargo on Cuba.
Rubio maintained that the naval blockade and sanctions are reducing Iran’s ability to fund its regional allies and nuclear program, noting that oil shipments through the Strait of Hormuz have reached 80% to 85% of prewar levels on some nights while Iranian oil specifically remains blocked. While he noted that the US sees no immediate need for large scale military strikes, Rubio warned that forces are ready to conduct devastating attacks if Iran escalates.
