I think reparations could be spent as they see fit. Reconstruction implies the money is going to exactly that.
But I agree it's a weird nitpick at this stage, as it seems almost impossible to verify once in place
But I agree it's a weird nitpick at this stage, as it seems almost impossible to verify once in place
That sentence is just worded badly, I would rewrite it as:
10. Iran to use Hormuz fees for reconstruction instead of demanding reparations from the US.
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"