Tehran slams Trump’s threat to use frozen Iranian assets for ships

TEHRAN

Iran’s Foreign Minister Abbas Araghchi on July 24 condemned U.S. President Donald Trump’s pledge to use frozen Iranian assets to cover potential damage to ships and cargo in the Strait of Hormuz from military strikes.

“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.

Araghchi’s remarks came after Trump said on July 23 that the United States would use Iranian funds already under Washington’s control to pay for any damage caused to ships, cargo or related assets 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,” he said on his Truth Social platform.

He did not identify the specific source of the funds, but billions of dollars in Iranian assets remain frozen under American sanctions.

Iran’s frozen assets have long been a key issue in negotiations between Tehran and Washington, including the now-defunct memorandum of understanding signed in June as a framework for ending the conflict.

Although the exact value of the blocked funds remains unclear, estimates place the total at around $100 billion. The U.S. first froze Iranian assets in 1979 following the seizure of the U.S. Embassy in Tehran and the hostage-taking of American diplomats.

As Washington and Tehran continue its standoff over the Strait of Hormuz, a new front emerged in the region with Yemen’s Iran-backed Houthis threatening to shut down another key trade route.

On July 23, Trump threatened the Houthis with “major military punishment” after the Tehran-backed militant group claimed they struck two Saudi oil tankers transiting through the Red Sea.

Meanwhile, the New York Times on July 23 reported that Iran rejected a U.S. ceasefire proposal delivered by Iraqi Prime Minister Ali al-Zaidi.

Zaidi’s trip was his first official visit to Iran since taking office in May. He traveled with a high-level ministerial delegation and met with President Masoud Pezeshkian as the two sides discussed bilateral ties, regional developments and efforts to strengthen security and stability.