Iran has warned that any attempt by the United States to use frozen Iranian assets to compensate victims of attacks in the Strait of Hormuz could further escalate tensions in the Gulf, rejecting a proposal attributed to U.S. President Donald Trump.
In a statement issued by Iran’s military spokesperson, Tehran dismissed the reported plan to draw from billions of dollars in frozen Iranian funds held in the United States and Europe to cover damages sustained by commercial vessels operating through the strategic waterway.
Iran described the proposal as unacceptable, arguing that the assets remain the property of the Iranian people and cannot be unilaterally redirected without international legal authority.
The warning follows remarks attributed to President Trump last week suggesting that frozen Iranian funds could provide a fair source of compensation for shipping losses incurred during the ongoing conflict in the Gulf.
Washington has accused Iran’s Islamic Revolutionary Guard Corps (IRGC) of responsibility for attacks involving speedboats, missiles and drones targeting commercial vessels in the Strait of Hormuz. Tehran has consistently rejected accusations that it deliberately targets civilian shipping, instead blaming recent instability on U.S. military operations in the region.
The Strait of Hormuz remains one of the world’s most strategically important maritime chokepoints, with approximately one-fifth of global oil supplies passing through the narrow passage connecting the Persian Gulf to international markets.
Since the latest round of hostilities began earlier this year, maritime traffic through the strait has reportedly declined significantly amid growing security concerns. Several commercial vessels have been damaged in attacks, while reports of fires, sinkings and crew fatalities have heightened fears over the safety of one of the world’s busiest energy corridors.
Shipping companies and insurers have responded by increasing security measures, rerouting some vessels and raising insurance premiums, adding further pressure to already elevated global energy costs.
Energy analysts warn that prolonged instability in the Strait of Hormuz could have far-reaching consequences for international oil markets. Any sustained disruption to crude exports from the Gulf could tighten global supplies, increase transportation costs and contribute to higher fuel prices worldwide.
Maritime security experts also caution that uncertainty surrounding liability and compensation for damaged vessels may discourage commercial operators and insurers, potentially extending disruptions to global shipping networks.
Diplomatic observers say the latest dispute over frozen Iranian assets adds another layer of complexity to already strained relations between Tehran and Washington. They argue that disagreements over sanctions, maritime security and regional military operations continue to complicate efforts to reduce tensions.
International calls for restraint have intensified as governments and industry stakeholders urge all parties to protect freedom of navigation and avoid actions that could threaten one of the world’s most vital trade routes.
As diplomatic efforts continue, the Strait of Hormuz remains under close international scrutiny, with developments in the region expected to play a significant role in shaping global energy markets and broader geopolitical stability in the months ahead.
