Trump says frozen Iranian assets will cover Gulf ship damage

President Donald Trump announced Thursday that the United States will use Iranian funds under its control to pay for damage sustained by ships and cargo in the Gulf region, his latest escalatory move in the ongoing confrontation with Tehran over control of critical maritime routes.

In a post on Truth Social, Trump declared that "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," calling it "the fair and equitable thing to do," according to South Korean outlet Hankyoreh, which reported the announcement on July 23.한겨레

The statement came the same day that Yemen's Houthi rebels claimed dual attacks on Saudi oil tankers in the Red Sea, as the U.S. military carried out a 12th consecutive night of strikes against Iranian infrastructure.Breitbart

Escalating Gulf Conflict

Trump's announcement builds on an existing administration effort to redirect frozen Iranian assets toward Gulf allies. In early June, Treasury Secretary Scott Bessent directed his team to assess damage caused by Iranian attacks and explore mechanisms to make Iranian assets available for reconstruction in affected countries. A source at the time told reporters that "Treasury will utilize all tools available to allow Iranian assets to be made available to our Gulf allies to support rebuilding and repairs for any future damage caused by Iran".Fortune+1

The frozen assets Washington has discussed reallocating include seized funds and Iranian ships previously captured by the United States.Euronews

Trump did not specify the legal authority under which the funds would be distributed or outline a claims process. The White House had previously stated in June that "no frozen funds have left the channel and no frozen funds will leave the channel unless Iran meets the requirements outlined in the MOU," referring to the now-collapsed memorandum of understanding between the two nations.CNBC

A Pattern of Financial Pressure

The announcement is the latest in a series of Trump proposals to leverage U.S. control of Iranian assets and Gulf maritime routes. On July 13, Trump declared the U.S. the "Guardian of the Hormuz Strait" and announced a 20 percent fee on all cargo transiting the waterway. He reversed that proposal the following day after conversations with Gulf state leaders, replacing the fee with promises of trade and investment deals.bloomberg+3

Earlier, in June, Trump said he would release some Iranian assets to purchase American agricultural products for Iran, describing food as "desperately needed" in the country. Iran's parliament speaker dismissed the claim.Trump's Truth+1

The broader conflict between the U.S. and Iran has intensified since the collapse of their June ceasefire agreement, with the U.S. conducting nightly airstrikes and maintaining its naval blockade of Iranian ports that took effect July 14.WSKG+1