US to Use Frozen Iranian Assets to Compensate for Ship Damage
The US has conducted 13 consecutive night strikes in Iran, killing four people. Trump announces that frozen Iranian assets under US control will be used to compensate for damage to ships and cargo, prompting a sharp response from Iran.
The US military has reported carrying out 13 consecutive nights of strikes against targets in Iran. Iranian state media said the attacks killed four people and wounded five others.
President Donald Trump announced that frozen Iranian assets under US control will be used to pay for any damage caused to ships, cargo, or related items. He emphasized that the compensation could be substantial.
Iranian Foreign Minister Abbas Araghchi called this a dangerous precedent, warning that if confiscation becomes normalized, no assets will be safe. He added that the ensuing chaos would be neither neat nor peaceful.
The US strikes followed an attack by Houthi rebels—backed by Tehran—on two Saudi oil tankers in the Red Sea. The strikes targeted Iranian military command centers, drone warehouses, communication networks, coast guard facilities, and naval forces. The US military stated the goal was to reduce Iran's ability to threaten civilian shipping in regional waters.
Oil prices have again risen above $100 per barrel amid escalating tensions. Concerns are growing that Houthi forces may pose new threats to vessels in the Red Sea.
In June, the US and Iran signed a 14-point memorandum of understanding to halt hostilities and resume shipping through the Strait of Hormuz, with plans to reach a ceasefire agreement within 60 days. However, Trump declared the truce over just three weeks later.
