US President Donald Trump says the US Navy has cleared mines from the Strait of Hormuz and now has “100%” control of the strategic waterway, as tensions with Iran intensify over demands for war reparations.

Speaking at the White House, Trump said the strait was open and described the US military presence as a “steel wall,” despite occasional Iranian attempts to lay mines. The US has maintained a naval blockade of Iranian ports since mid-April.

Iran, however, has said the strait will remain closed until Washington lifts its blockade and sanctions, withdraws US forces from the region, pays war reparations and releases frozen Iranian assets.

Trump later said Iran’s demand for compensation had given him an “interesting idea,” suggesting Tehran should instead compensate the US for Americans killed or wounded in attacks linked to Iran, as well as Iranian protesters he said had been killed by the regime over decades.

The dispute has added to uncertainty over the Strait of Hormuz, through which roughly one-fifth of the world’s oil previously passed. Tanker traffic remains subdued, raising concerns about global energy supplies.

Iranian Foreign Ministry spokesman Esmaeil Baqaei also rejected US claims that sanctions were crippling Iran, accusing Washington of repeatedly turning to sanctions when diplomacy fails.