Trump Threatens to Use Frozen Iranian Assets for Shipping Damage Payment

Tehran on Friday condemned President Donald Trump’s declaration that the United States would use Iranian assets to compensate for damage inflicted on a commercial vessel, describing the move as an “incendiary precedent.” The statement came after the U.S. Navy reported that a U.S. warship had collided with a merchant ship in the Gulf of Oman, prompting Trump to suggest that frozen Iranian funds could be tapped to cover repair costs and potential liabilities. Iranian officials reiterated that the assets in question remain under international sanctions and that any unilateral appropriation would violate established legal norms.

The Iranian foreign ministry warned that such a precedent could destabilize the already fragile framework governing state‑seized assets and might provoke further retaliatory measures. It called on the United States to respect existing sanctions regimes and to resolve maritime incidents through diplomatic channels rather than through unilateral financial actions. The exchange underscores the heightened tensions between the two nations and highlights the broader implications for international maritime law and sanctions enforcement.