Trump Declares Iran Must Pay for Damage to Ships Using Frozen Assets Amid Rising Tensions

In a significant escalation of tensions between Washington and Tehran, U.S. President Donald Trump announced overnight that any damage caused to ships or maritime cargo will be compensated using Iranian funds frozen under U.S. control. Trump made this unprecedented declaration on his social media platform Truth Social, following a series of extensive American strikes on Iranian targets. He stated, "Until further notice, from this point forward, any damage to ships, cargo, or related items will be paid for with Iranian money held by the U.S.", adding that the damages could be substantial but insisted this was fair and just.

This announcement follows Trump's recent threat of a "massive attack larger than ever before" against Iran, which he confirmed in a conversation with journalist Barak Ravid, asserting full readiness for such action. The U.S. military launched a wave of strikes against Iranian military sites overnight, marking the 13th consecutive night of American attacks. Targets included Iranian military headquarters, drone storage facilities, communication networks, coastal surveillance sites, and naval capabilities. Explosions were reported in several southern and southwestern Iranian cities, alongside activation of air defense systems in Tehran.

Iranian Foreign Minister Abbas Araghchi responded on the social media platform X, warning that Trump's move sets a "dangerous and provocative precedent." He cautioned that governments normalizing asset seizures risk global chaos and insecurity of assets worldwide. Iran holds billions in frozen assets internationally due to longstanding sanctions, and this U.S. policy shift could create an international precedent for compensating damages from frozen funds.

Amid these developments, Israeli security officials are preparing for potential Iranian retaliatory missile strikes against Israel, possibly as soon as this weekend. The use of frozen Iranian assets to pay for damages marks a significant intensification in the economic and military confrontation between the U.S. and Iran, likely prompting further responses from Tehran.