Iran Threatens to Block Hormuz Ships Over Frozen Asset Use

Iran warns of blocking vessels transiting Hormuz if frozen assets used for damages

Tehran, July 28

According to a statement issued by the spokesperson for Iran's Khatam al-Anbiya Central Headquarters and carried by Iranian state media, Islamic Republic of Iran Broadcasting (IRIB), Iran slammed the United States of seeking to use its frozen assets to compensate for vessels damaged during what Tehran described as the "imposed war" against the Islamic Republic.

"The US President has announced that in the wake of aggressive actions and continued efforts to destabilise the region," the statement said.

Referring to the US plans to use Iranian assets, the spokesperson stated that compensation for vessels damaged during the conflict would be drawn from Iran's frozen funds.

"The damages to vessels that were damaged during the imposed war against Islamic Iran due to the creation of insecurity by the US military and the violation of the illegal and unsafe route south of the Strait of Hormuz will be paid from Iran's frozen assets," the statement said.

The spokesperson warned that if any country or company acted on such plans, Iran's armed forces would prevent their vessels from transiting the Strait of Hormuz.

"While warning the criminal US President about the consequences of this illegal action, we announce to all companies and countries that welcome Trump's proposal and use Iran's frozen assets under this title that from now on, the armed forces of the Islamic Republic of Iran will not allow any of their vessels to pass through the Strait of Hormuz," the statement said, as quoted by IRIB.

The remark comes after US President Donald Trump, in a post on Truth Social, said that any future damages caused to ships, cargo or related maritime assets would be paid for using Iranian money held and controlled by the United States.

"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 said in his post.

He added that the damages "may be very substantial" but described the move as "the fair and equitable thing to do."

Iran's Foreign Minister Seyed Abbas Araghchi slammed Trump's plan to use Iranian assets held by Washington to compensate for damages to ships and cargo transiting through strategic maritime waterways in West Asia, calling the move an "incendiary precedent".

In a post on X, Araghchi warned that confiscating another country's assets to settle unrelated claims would undermine international norms and create wider instability.

"Seizing another nation's assets to pay for unrelated future claims is an incendiary precedent. Those who celebrate or profit from such funds should remember: once governments normalise confiscation, no one's assets are safe. Ensuing chaos will not be pretty or peaceful," the post read.

— ANI