Iran Hits Out At Trump's Plan To Use Frozen Assets To Pay For Damage To Shipping: 'Incendiary Precedent'

Iran condemned the US plan to use frozen Iranian assets for Gulf strike damages, calling it an “incendiary precedent” and warning such actions could undermine financial norms and trigger global instability.

Hours after the United States President Donald Trump announced that Washington will begin using frozen Iranian assets to pay for ships and cargo damaged by strikes in and around the Gulf, Iranian Foreign Minister Abbas Araghchi sharply pushed back, calling the move dangerous and destabilising.

Araghchi termed the proposal an “incendiary precedent,” warning that seizing a nation’s assets to settle unrelated future claims undermines global financial norms. “Seizing another nation’s assets to pay for unrelated future claims is an incendiary precedent. Those who celebrate or profit from such funds should remember: once governments normalize confiscation, no one’s assets are safe. Ensuing chaos will not be pretty or peaceful,” Araghchi posted on X (formerly Twitter).

“Please let this statement serve to represent, until further notice, that from this point forth, 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,” Trump posted on his social media platform, Truth social.

The US military on Thursday night launched a 13th consecutive night of strikes against Iran. In a post on X, US Central Command (CENTCOM) said the latest strikes began at 6:45pm ET. “US forces started another night of strikes against Iranian military targets at 6:45 pm ET today. This is the 13th consecutive night of strikes aimed to hold Iran accountable and diminish threats from the Islamic Revolutionary Guard Corps to commercial shipping,” CENTCOM said.

Iran’s Fars news agency reported multiple explosions in Ahvaz, the capital of Khuzestan province, while local reports also described explosions in the southern port city of Bandar Abbas.

Earlier, Trump said he was considering expanding military operations with attacks that would be larger than those carried out during Operation Epic Fury.

“I am considering a massive attack. Bigger than ever before. I am close to making a decision. We are all set for it,” the president said in a brief interview to Axios.

He did not give a timeline for a decision.

Two US officials said no final decision had been made and no new military orders had been issued.