President Donald Trump stated on Thursday that Iranian money controlled by the United States will be utilized to compensate for damages to ships resulting from ongoing conflicts in the Middle East. In a post on Truth Social, Trump declared, "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." He noted that while the damages could be substantial, he believes this approach is fair and equitable.
Trump's comments follow his earlier remarks on Tuesday, where he described Iran as "desperate" to negotiate after a ceasefire agreement collapsed. Under the previous ceasefire terms, approximately $24 billion in restricted Iranian funds would have been unfrozen if Iran agreed to a lasting peace. The ceasefire ended when Iranian forces began attacking ships in the Strait of Hormuz, leading to a strong U.S. response.
Both the U.S. and Iran have accused each other of violating the ceasefire, particularly regarding the management of the Strait of Hormuz. Trump has declared the ceasefire agreement completely over. The decision to use Iranian funds for compensation may provoke retaliation from Tehran, which claims control over the vital oil shipping lane and has justified its attacks on commercial vessels.