Trump: U.S. to tap frozen Iranian assets to compensate for Hormuz shipping attacks
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US President Donald J. Trump has announced that the United States will use Iranian assets currently frozen under American control to pay for damages resulting from recent attacks on commercial shipping in the Strait of Hormuz. He characterized the decision as a just means of holding Tehran accountable without shifting the financial burden onto U.S. taxpayers.
Speaking to reporters aboard Air Force One en route to a Michigan event, the president said: “We’re going to use Iran’s money to pay for the damage they did. In other words, the Iran money that we control will be used to pay for damages.”
The announcement comes at a time of elevated tensions in the Gulf, where Iranian forces or their affiliated proxies have been implicated in strikes against merchant vessels, threatening a strategic waterway through which a significant portion of global oil trade passes.
Treasury Finalizing Implementation
Administration officials said the Treasury Department is still working out the precise extent of the damages, the total amount of frozen assets to be diverted, and the timeline for executing the plan. Treasury Secretary Scott Bessent has been pushing the proposal forward since at least June, with ongoing assessments covering ship repair costs, lost cargo, and the broader impact on regional allies.
Supporters of the administration view the move as a straightforward exercise in accountability—turning Tehran’s own resources against the fallout of its actions. Critics, however, warn that dipping into the frozen funds could weaken Washington’s leverage in wider negotiations over Iran’s nuclear ambitions and regional security posture.
The president’s remarks align with his long-standing tough stance on Iran, which saw the reimposition of sweeping sanctions during his first term and continued pressure measures in his current tenure.
As of late Monday and into Tuesday, there were no immediate signs of fresh military escalation, though Trump has previously cautioned that “strong military action” remains on the table if threats to the Strait of Hormuz persist.
The White House did not immediately respond to requests for additional comment on the legal justification for reallocating the funds or on potential diplomatic fallout.
The development highlights the persistent volatility in U.S.-Iran relations, even as global energy markets keep a close watch for any further disruptions to shipping lanes essential to international commerce. (Source: Gulf News)
