Iran vows to block Hormuz transit over Trump’s frozen assets plan

Iran's military command warned on Monday that any country or company accepting compensation from frozen Iranian assets would have its vessels barred from the Strait of Hormuz, escalating a standoff with the United States over maritime security in the Gulf.

Iran's Warning

The spokesperson for the Khatam al-Anbiya Central Headquarters — Iran's top joint military command — issued the threat in direct response to President Donald Trump's announcement last week that frozen Iranian funds under U.S. control would be used to pay for ships and cargo damaged during the ongoing Gulf conflict.wanaen

"While warning the criminal U.S. President regarding the consequences of this illegal act, we notify all companies and countries accepting Trump's proposal to utilize Iran's frozen assets under this pretense: from this moment forward, the Armed Forces of the Islamic Republic of Iran will not grant passage through the Strait of Hormuz to any of their vessels," the spokesperson said.wanaen

Trump's Provocation

Trump posted on Truth Social on July 24 that damages to ships and cargo would henceforth be paid from "Iranian Money that the United States has in its possession, and controls". He described the measure as "fair and equitable" while acknowledging the damages "may be very substantial". Iran's frozen overseas assets are estimated at between $100 billion and $123 billion, though the amount directly under U.S. control remains undisclosed.military+3

Tehran immediately condemned the announcement. Al Jazeera reported that Iranian officials called Trump's remarks "incendiary".aljazeera

Broader Context

The threat represents the latest in a series of escalatory moves by Iran's Khatam al-Anbiya command regarding the Strait of Hormuz, through which roughly a fifth of the world's oil passes. In mid-July, spokesperson Ebrahim Zolfaqari declared that Iran would "under no circumstances allow the United States to interfere in the management of the Strait of Hormuz". Iran had previously announced a closure of the strait to vessel traffic in June amid renewed U.S. military operations.parstoday+2

The confrontation adds another obstacle to already stalled U.S.-Iran negotiations, with Iran framing the dispute as a matter of sovereignty over the strategic waterway.