[umanwizard]

I think you're right, it's a bracketing ambiguity.

Rather than "Iran to use Hormuz fees for (reconstruction instead of reparations)" it's more likely to mean "Iran to use (Hormuz fees for reconstruction) instead of reparations"

[Detrytus]

Yeah, I think they want to do it this way, because Iran wants some compensation for damages, but paying reparations directly would be too humiliating for the US, and Trump would never agree to it.