Thu, 17 Sep 2026 · LIVE
Updated Jul 28, 2026 · 06:25
World News Updated Jul 28, 2026

Trump to Use Iranian Funds for Strait of Hormuz Ship Damages

US President Donald Trump has announced that Iranian funds under US control will be used to compensate for damage to ships in the Strait of Hormuz. Trump made the statement while speaking to reporters on Air Force One, rejecting the use of American funds for reimbursement. He claimed conditions in the strait have improved following US military operations and that Washington and Tehran are engaged in talks. Trump also compared the situation to US actions in Venezuela, suggesting a similar financial outcome.

Iran funds will cover ship damage: Trump

Washington, July 28

US President Donald Trump has said Iranian funds controlled by Washington will be used to compensate for damage caused to ships in the Strait of Hormuz during the conflict.

Trump made the announcement while speaking to reporters aboard Air Force One on Monday. He rejected the suggestion that the United States would use its own funds to reimburse shipping companies.

"No. No. We're going to use Iran's money to pay for the damage they did," Trump said when asked whether the US would pay the companies directly.

"In other words, Iran money that we control will be used to pay for damages. Sound good? Not bad, right? You should be rewarded," he added.

Trump did not explain how much Iranian money was under US control, which shipping companies would qualify or how compensation would be distributed.

The president said conditions in the Strait of Hormuz had improved after US military operations against Iran. He also said Washington and Tehran were engaged in talks.

"Their whole shoreline is wiped out. The strait is in very good shape now, and we're talking right now," Trump said.

He said Iran had sought a pause in attacks as negotiations continued and suggested that the United States could resume military action if no agreement was reached.

"I think there's a good chance that something could happen. And if it does, good. If it doesn't, we go back to doing what we were doing two days ago," Trump said.

The president claimed Iran had requested a meeting through intermediaries and through direct communication after coming under heavy US military pressure.

"They want to meet and we're meeting. We'll see what happens. There's a chance we could make a deal," Trump said. "Without what we did, they wouldn't even be talking to us."

Trump also compared his approach towards Iran with US actions involving Venezuela. He said money received from Venezuela had covered Washington's costs and predicted a similar outcome with Iran.

"We paid for that war many times over, and that will happen with Iran also," Trump said.

Asked where money received from Venezuela was going, Trump said it was being used for "running the country" and could be directed towards the military with congressional approval.

The Strait of Hormuz links the Persian Gulf with the Gulf of Oman and the Arabian Sea. It is a critical route for oil and liquefied natural gas exports from Gulf producers to global markets, including energy-importing countries such as India.

— IANS

Reader Comments

James A

Classic Trump—always finding a way to make someone else pay. He'll probably use this as a campaign promise. But honestly, how much Iranian money does the US actually control? And will it be enough to cover the damages? Sounds like another bluff to me.

Priya S

As an Indian, I'm worried about our energy security. The Strait of Hormuz is not a toy for Trump to play with. If he keeps escalating tensions, it will hit our economy hard. We need to diversify our oil sources and strengthen ties with other Gulf nations to avoid being caught in this mess.

Michael C

"Their whole shoreline is wiped out." Trump really thinks he's playing a video game. The Strait is a strategic chokepoint for global oil—this isn't just about Iran or the US. India, China, Japan, and Europe will all feel the pain if this escalates. Diplomacy, not threats, is the answer.

Kavya N

Trump is treating international relations like a business deal—'Iran money will pay for damages.' But geopolitics doesn't work that way. India has historically had good relations with Iran, and this kind of US unilateralism puts us in a tough spot. We must tread carefully.

Rohit P

This is a great move by Trump. Iran has been destabilizing the region for years—attacking ships, threatening oil routes. If the US can use Iran's own money to fix the damage they caused, it's poetic justice. India should support this tough stance because a strong US presence in the Gulf protects our interests too.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Reader Voices

Leave a comment

Be kind. Add to the conversation. 0/50
Thank you — your comment has been submitted.
JS blocked