Iran Warns Trump’s Plan to Use Frozen Assets for Hormuz Shipping Losses Sets ‘Dangerous Precedent’

Iran's Foreign Minister Abbas Araghchi has strongly criticized U.S. President Donald Trump's proposal to utilize frozen Iranian assets to compensate for potential damages in the Strait of Hormuz. Araghchi labeled the plan an "incendiary precedent," warning that it could destabilize international financial security.

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

"Seizing another nation's assets to pay for unrelated future claims is an incendiary precedent," Araghchi stated on social media platform X. He cautioned that normalizing confiscation could leave all assets vulnerable, predicting "ensuing chaos will not be pretty or peaceful."

Trump's announcement on Thursday indicated that the United States would employ Iranian funds currently under its control to cover any damages to ships, cargo, or related assets stemming from strikes in the critical waterway. "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 declared in a statement.

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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.

The dispute escalates ongoing tensions between Washington and Tehran, which have seen a series of strikes and retaliatory actions across the region. The exact source of the funds Trump intends to use was not specified, but significant Iranian assets remain frozen under U.S. sanctions.

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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.