United States President Donald Trump announced on Thursday, July 24th, 2026, that any damages to ships and cargo in the Strait of Hormuz would be paid for using Iranian money currently frozen and controlled by the US. Trump made the statement on his Truth Social platform, emphasizing that the funds are “in its possession, and controls.”
This declaration has drawn sharp criticism from Tehran. Iranian Foreign Minister Abbas Araghchi condemned the move in a post on X on Friday morning, describing the seizure of another country's assets to pay for unrelated future claims as an “incendiary precedent.”
Tensions between Iran and the US have intensified since early July, with both sides exchanging attacks and Iran targeting US military bases in the region. Washington completed its 13th consecutive night of strikes on Iran late Thursday, with Trump considering a “massive attack” on the country, “bigger than ever before.”
The US first froze Iranian funds in 1979 following the hostage crisis at the US embassy in Tehran. The current escalation adds to the complex geopolitical dynamics involving the US, Iran, and regional actors.
Additional regional developments include a US court affirming the release of a pro-Palestine scholar amid ongoing legal battles, and Israel conducting blasts across southern Lebanon despite a ceasefire agreement.
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