Trump says damage to ships in Strait of Hormuz to be paid from Iranian funds

US President Donald Trump has said that Washington will use Iranian funds already in its possession to cover any damage to ships or cargo in the Strait of Hormuz. In a statement posted on Truth Social, Trump said: "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."

Source of Funds

Trump did not specify the source of the funds, but billions of dollars in Iranian assets remain frozen under US sanctions. The announcement comes as the US and Iran continue to exchange strikes following the breakdown of a Pakistani-brokered ceasefire agreement signed last month.

Escalating Conflict

The war has driven up energy prices and disrupted shipping through the Strait of Hormuz, a critical global oil chokepoint. Trump said the damages "may be very substantial but, nevertheless, this is the fair and equitable thing to do."