Trump says he will use Iranian assets under US control to pay for future ship, cargo damage amid war

Trump said the move was 'fair and equitable,' but did not explain which frozen Iranian funds would be used or the legal process for accessing them
Iranian Foreign Minister Abbas Araghchi strongly criticized President Donald Trump's proposal, warning that using another country's frozen assets to settle unrelated future claims would create a dangerous international precedent (Getty Images)
Iranian Foreign Minister Abbas Araghchi strongly criticized President Donald Trump's proposal, warning that using another country's frozen assets to settle unrelated future claims would create a dangerous international precedent (Getty Images)

WASHINGTON, DC: President Donald Trump said Thursday, July 23, that the United States will use Iranian funds under its control to compensate for future damage to ships, cargo and related property as tensions with Tehran continue to disrupt commercial shipping in the Middle East.

The announcement came as the US military launched its 13th consecutive night of strikes against Iranian targets and reports indicated Tehran had rejected a US-backed ceasefire proposal. Trump did not specify how the compensation mechanism would operate or which incidents would qualify.

Trump says ship damage will be covered by Iranian funds

In a post on Truth Social, Trump said Iranian assets held by the United States would be used to cover losses stemming from attacks on commercial shipping.

"Please let this statement serve to represent, until further notice, that from this point forth, 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," Trump wrote. "These damages may be very substantial but, nevertheless, this is the fair and equitable thing to do."



Trump did not identify which frozen Iranian assets would be used or explain the legal process for accessing them. The value of Iranian funds held abroad has varied over time and remains spread across multiple financial institutions and jurisdictions.

The remarks, however, prompted a response from Iranian Foreign Minister Abbas Araghchi, who criticized the proposal in a post on X.



"Seizing another nation's assets to pay for unrelated future claims is an incendiary precedent." He added, "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."

Iran's Foreign Minister Abbas Araghchi arrives for a bilateral meeting with Switzerland's counterpart at the Bürgenstock Resort in Obbuergen, near Lucerne, in Switzerland, Sunday, June 21, 2026, ahead of high-level talks aimed at advancing a deal to end the Middle East conflict. (Fabrice Coffrini/Keystone via AP)
Iran's Foreign Minister Abbas Araghchi arrives for a bilateral meeting with Switzerland's counterpart at the Bürgenstock Resort in Obbuergen, near Lucerne, in Switzerland, Sunday, June 21, 2026, ahead of high-level talks aimed at advancing a deal to end the Middle East conflict (Fabrice Coffrini/Keystone via AP)

Announcement comes as US strikes continue 

Trump's comments came hours after US Central Command announced a 13th consecutive night of strikes targeting Iranian military infrastructure.

According to CENTCOM, the operation struck Iranian military command centers, drone storage facilities, communications networks, coastal surveillance sites and maritime capabilities aimed at reducing threats to commercial vessels transiting the Strait of Hormuz.



Earlier Thursday, Trump suggested he was not prepared to negotiate a new ceasefire with Tehran. "We're doing very well against the Islamic Republic of Iran, we're doing extremely well," Trump said. "They would like to do something, but I say they're not ready yet. They need more of the same." He also said Iranian leaders "have some evil intentions."



Meanwhile, The New York Times, citing Iranian and Iraqi officials, reported that Tehran had rejected a US ceasefire proposal conveyed through Iraqi Prime Minister Ali al-Zaidi. According to the report, Iranian officials opposed a temporary agreement that did not address control of the Strait of Hormuz.

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