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President Donald Trump announced that the United States will use Iranian funds in its possession to cover damages to ships and cargo resulting from strikes by Iran. In a post on Truth Social on Thursday night (July 23), President Trump stated, "Any and all damages done to Ships, Cargo, or anything related thereto, will be paid for by Iranian Money that the United States has in its possession, and controls." This decision comes amid ongoing tensions between the U.S. and Iran.
The U.S. has billions of dollars in frozen Iranian assets, which were initially set to be released to Iran as part of a now-defunct temporary cease-fire agreement. The funds are likely to be used to compensate for the damages, although the exact source of the money remains unspecified.
According to The Times of Israel, President Trump emphasized that the damages might be substantial but described this approach as "the fair and equitable thing to do." The move is expected to face scrutiny and potential legal challenges, given the complex nature of U.S.-Iran relations and the ongoing negotiations for a war-ending memorandum of understanding (MOU).
The U.S. and Iran have been engaged in high-level talks, with the possibility of a framework to guide negotiations on a detailed war-ending accord. However, as reported by The Soufan Center, the negotiations have been fraught with distrust and disagreements over terms, including the release of Iranian funds.
The international community is closely watching these developments, as the U.S. continues to enforce a naval blockade of Iranian ports and maintains military pressure in the region. The situation remains fluid, with potential implications for global shipping and diplomatic relations.