Iran threatens to block ships in Strait of Hormuz over Trump’s plan to use frozen assets for compensation payments | Today’s news
Iran warned on Tuesday (July 28th) that it could block commercial vessels linked to companies and countries using its frozen assets for compensation payments to pass through the Strait of Hormuz.
The warning came after US President Donald Trump said future damage to ships, cargo and related maritime assets would be covered by Iranian funds held and controlled by Washington.
In a statement carried by the Islamic Republic of Iran Broadcasting (IRIB), Iran’s Central Command spokesman Khatam al-Anbiya accused the United States of trying to use Tehran’s frozen assets to compensate for damage caused during the recent conflict in West Asia.
Iran described the conflict as a “forced war” and dismissed the US move as illegal.
“Damage to vessels that were damaged during the imposed war against Islamic Iran due to the creation of uncertainty by the US military and the disruption of the illegal and dangerous route south of the Strait of Hormuz will be paid from the frozen assets of Iran,” the statement said.
Iran’s military has warned that any country or company that supports such a plan could face restrictions on access to the sea.
“The armed forces of the Islamic Republic of Iran will not allow any of their vessels to pass through the Strait of Hormuz,” the statement said.
Trump announced the use of Iranian funds
The warning followed a statement by Trump on his Truth Social platform, where he said Iranian money held by the United States would be used to cover future damage to ships and cargo.
“Any damage to the ships, cargo or anything related to them will be paid for with Iranian money in the possession and control of the United States,” Trump wrote.
Trump said the costs could be “very significant” but called the move a “fair and just” measure.
Iran calls US move ‘inflammatory precedent’
Iranian Foreign Minister Seyed Abbas Araghchi criticized Trump’s announcementhe warned that using another country’s frozen assets to settle claims could undermine international financial norms.
In a post on X, Araghchi said: “Seizing another nation’s property to pay unrelated future claims is an outrageous precedent.”
He warned that normalizing asset confiscation could cause wider instability.
“Once governments normalize confiscation, nobody’s property is safe,” Araghchi said.
The Strait of Hormuz remains a global flashpoint
The latest dispute adds to tensions around the Strait of Hormuz, one of the world’s most important maritime choke points through which much of the global supply of oil and liquefied natural gas passes.
Any restrictions on waterway shipping could disrupt energy markets and raise concerns about global trade flows.
Iran has previously threatened to limit access to the strait amid heightened tensions with the US and its allies, while Washington has repeatedly said it supports freedom of navigation in the strategic waterway.