US and Iran exchange strikes in Gulf amid frozen asset dispute

Tehran has denounced a newly announced U.S. proposal to tap approximately $30 billion in Iranian sovereign assets that have been frozen since the 1979 revolution, intending to use the funds to cover American war‑related liabilities. The United States, citing the need to address costs associated with recent military engagements, said the move would be carried out through a legal mechanism that would allow the assets to be redirected without formally confiscating them. Officials from the Treasury Department indicated that the plan would be subject to congressional oversight and would comply with existing sanctions frameworks.

Iran’s foreign ministry responded by labeling the initiative a violation of international law and an infringement on Iranian sovereignty, warning that it could trigger reciprocal measures against U.S. interests abroad. The condemnation arrives amid ongoing diplomatic tensions over the broader issue of frozen Iranian wealth, which has been a point of contention in negotiations over the nuclear agreement and regional security. Analysts note that the proposal could complicate U.S.–Iran relations further, while also raising questions about the precedent it sets for the use of frozen assets in future geopolitical disputes.