President Donald Trump said the United States will compensate for ship damages in the Strait of Hormuz and the Red Sea using frozen Iranian funds, signaling his intent to hold Iran and Iran-backed Houthi militants financially accountable for maritime attacks.
Trump posted on his Truth Social account Thursday that "from this point forward, any damages incurred to ships, cargo, or anything associated therewith, will be paid for out of the funds that the United States holds and controls belonging to Iran."
"The damages could be very substantial, but nonetheless this is fair and equitable," he added.
The remarks came amid a series of attacks by Iran and Yemen's Houthi rebels on oil tankers and commercial vessels in the Strait of Hormuz and the Red Sea, respectively.
The United States holds and administers a portion of Iranian government assets frozen under sanctions. Trump's public declaration that he intends to use those funds to compensate future ship damages was widely interpreted as a strong warning to Tehran.
By making clear that Iran would bear the economic costs of maritime attacks, Trump appeared to be ratcheting up pressure to deter further strikes.
However, it remains unclear whether the United States can legally use frozen assets to compensate private shipping losses, and no legal basis under international law or specific enforcement mechanism has been made public.
sjy@heraldcorp.com
