Trump threatens to use frozen Iranian assets to pay for shipping damage

US President Donald Trump announced on Truth Social that all damages to ships, cargo, and related items will be paid for using Iranian money that the United States holds and controls.

Iran's Foreign Minister Abbas Araghchi responded on Friday, calling the seizure of assets for shipping damage an 'incendiary precedent'. He warned that if governments normalize confiscation, no one's assets are safe, and the ensuing chaos will not be peaceful.

The exchange comes as the US launched a 13th consecutive night of strikes on Iran, targeting military and commercial sites. Iranian state media reported explosions in the port city of Bandar Abbas, a key hub for military supplies and trade, as well as on Qeshm Island, which houses naval assets including drone boats capable of attacking vessels in the Strait of Hormuz. Blasts were also reported near Andimeshk, Omidiyeh and Firuzabad.

As tensions over the Strait of Hormuz persist, a new front emerged with Yemen's Iran-backed Houthis threatening another key trade route. On Thursday, Trump threatened the Houthis with 'major military punishment' after the group claimed it struck two Saudi oil tankers in the Red Sea. Trump stated the US would hold Iran responsible, as the Houthis are a proxy of Iran, and warned of major military punishment against Iran and the Houthis if further attacks occur.

Earlier this week, Trump said the US would 'take care' of the Houthis if shipping and energy exports were jeopardized by a potential blockade of the Bab el-Mandeb strait, through which about 12% of global trade passes. The Houthis had earlier claimed to have closed the strait to Saudi-linked shipping in retaliation for the Saudi blockade on Yemen and a recent attack on Sana'a airport.