Trump to Seize Frozen Iranian Assets to Cover Shipping War Damages, Sparking Global Backlash
Maryam Tariq
Trump Declares Iranian Funds Will Cover Ship Damages
President Donald Trump announced late Thursday that the United States would use frozen Iranian funds it holds to pay for any damage done to ships and cargo amid the ongoing Middle East conflict. Posting on social media, Trump stated that going forward, all damage to ships, cargo, or related property would be paid for using Iranian money currently in US possession and control. He acknowledged the costs could be substantial but described the move as fair and equitable.
Tehran Calls It a Dangerous Precedent
Iran responded swiftly and angrily. The country’s Foreign Minister warned the move represents an incendiary precedent that risks global chaos, cautioning that once confiscation of state assets becomes normalized, no nation’s assets are truly safe. The exchange marks a sharp reversal from earlier diplomacy. The unfreezing of Iran’s assets had been a key point in a memorandum of understanding struck between Washington and Tehran in June, an agreement neither side has fully honored.
Billions at Stake, No Legal Framework Specified
Trump did not clarify which funds would be tapped or under what legal authority. The US reportedly holds roughly 2 billion dollars in frozen Iranian assets, with billions more suspended across countries including Iraq, Qatar, Japan, and Luxembourg. The maneuver echoes the West’s approach to roughly 300 billion dollars in frozen Russian sovereign assets since that conflict escalated.
Escalation Amid Wider Regional Tensions
The announcement comes as oil prices topped 100 dollars a barrel for the first time since May, following Houthi attacks on Saudi ships in the Red Sea and continued closure pressures on the Strait of Hormuz. The US House voted to require congressional approval to continue the Iran conflict, though a similar Senate measure failed.
Sources:
Al Jazeera: https://www.aljazeera.com/news/2026/7/24/tehran-slams-trumps-threat-to-use-frozen-iranian-assets-as-incendiary
CNN: https://www.cnn.com/2026/07/23/world/live-news/iran-war-trump
Washington Times: https://www.washingtontimes.com/news/2026/jul/24/trump-says-attacked-vessels-repaid-iranian-money-prompting-warning/
Euronews: https://www.euronews.com/2026/07/24/trump-threatens-to-use-frozen-iranian-assets-to-pay-for-shipping-damage
