Iran Warns Trump’s Plan to Use Frozen Assets for Hormuz Shipping Losses Sets ‘Dangerous Precedent’

TEHRAN, Jul 24: Iran’s Foreign Minister Abbas Araghchi on Friday condemned US President Donald Trump’s plan to use frozen Iranian assets to cover potential damage to ships and cargo in the Strait of Hormuz, warning it could create a dangerous international precedent.

“Seizing another nation's assets to pay for unrelated future claims is an incendiary precedent,” Araghchi said in a post on X.

“Those who celebrate or profit from such funds should remember: once governments normalize confiscation, no one's assets are safe. Ensuing chaos will not be pretty or peaceful,” he added.

The remarks came after Trump said on Thursday that the United States would use Iranian funds already under Washington’s control to pay for any damage to ships, cargo or related assets caused by strikes in the Strait of Hormuz.

“Any and all damages done to Ships, Cargo, or anything related thereto, will be paid for by Iranian Money that the United States has in its possession, and controls,” Trump said in a statement posted on his Truth Social platform.

Trump did not specify the source of the funds, though billions of dollars in Iranian assets remain frozen under US sanctions.

The dispute comes as tensions between Washington and Tehran continue to escalate, with both sides carrying out strikes and retaliatory attacks across the region.