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Trump threatens to use frozen Iranian assets, Tehran retaliates

Trump threatens to use frozen Iranian assets, Tehran retaliates
Trump threatens to use frozen Iranian assets, Tehran retaliates

Donald Trump Iran announced its intention to use Iranian funds held by Washington to compensate for damages suffered by ships in the Strait of Hormuz. Tehran called this threat an "inflammatory precedent" and launched a new wave of drone attacks against US bases.

On his Truth Social platform, the US president wrote on Thursday that damage to ships and their cargo in the Strait of Hormuz would be covered by "Iranian money that the United States has in its possession and controls." "This damage could be very substantial, but it is nevertheless the right and just thing to do," he added.

Iranian Foreign Minister Abbas Araghchi responded Friday morning on X, stating that seizing a country's assets to "pay future unrelated claims" sets "a inflammatory precedent." "Those who rejoice or profit from these funds should remember: once governments normalize confiscation, no one's assets are safe. The ensuing chaos will be neither beautiful nor peaceful," he warned.

The issue of frozen assets was among the topics addressed in the memorandum of understanding signed in June between Washington and Tehran, which has since collapsed. The United States began freezing Iranian funds in 1979, following the hostage crisis at the Iranian embassy in Tehran. The exact amount of these assets remains unknown, but some estimates place it at around $100 billion.

Thursday night marked the thirteenth consecutive US airstrike against Iran. Trump also raised the possibility of a "massive attack," "bigger than ever," against the country. He also promised "major military punishment" for Iran and its Houthi allies after the latter attacked two Saudi oil tankers in the Red Sea.

The Iranian military retaliated Friday morning by announcing, via the state news agency Mehr, a new series of drone attacks against US military installations in Bahrain and Jordan. Amid escalating tensions since early July, maritime tracking data indicates that only one oil tanker transited the Strait of Hormuz on Thursday, the lowest number recorded since May 7.

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