Trump says US will use frozen Iranian assets to pay damages

President Donald Trump announced that the United States will use Iranian funds already in its possession to satisfy a damages award ordered by a federal court. The statement, made during a press briefing on Tuesday, referred to assets seized under longstanding sanctions that the Treasury Department has frozen and controls through the Office of Foreign Assets Control. Those funds, which stem from Iranian oil revenues and other commercial activities deemed in violation of U.S. sanctions, are earmarked to cover the compensation awarded to plaintiffs in a lawsuit filed by families of individuals killed in a 2020 attack on a U.S. military installation in Iraq.

Legal analysts note that the Treasury’s control of the assets provides the executive branch with the authority to allocate the money for court‑ordered judgments, though the process will require coordination with the Department of Justice and may be subject to further diplomatic negotiations with Iran. The move follows a series of high‑profile cases in which U.S. courts have sought to hold foreign states financially accountable for actions that resulted in American casualties. The administration’s decision underscores the broader strategy of leveraging seized foreign assets to meet domestic legal obligations while maintaining pressure on Tehran for compliance with international norms.