President Donald Trump on Thursday said Iranian money controlled by the United States will be used to pay for ships damaged as a result of the war in the Middle East.
“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 said in a Truth Social post. “These damages may be very substantial but, nevertheless, this is the fair and equitable thing to do.”
The president’s comments follow remarks he made on Tuesday, claiming Tehran was “desperate” to make a deal following the war resuming after a ceasefire agreement went up in flames.
Under the now-dead ceasefire agreement, if Iran were to agree to terms for lasting peace, the U.S. would have unfrozen roughly $24 billion in restricted Iranian funds. The agreement crumbled after Iranian forces began attacking ships transiting the Strait of Hormuz, which was met with harsh U.S. retaliation.
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The U.S. and Iran both accuse each other of violating the ceasefire, particularly concerning management of the Strait of Hormuz, and Trump has declared the agreement as completely over.
Using Iranian money will certainly be met with retaliation from Tehran, not only because access to the funds was teased in the memorandum of understanding, but Iran has said it has complete and total control over the crucial oil shipping lane. Tehran has repeatedly framed its attacks on commercial ships as justified because it sees itself as the governing body of the strait.