Iranian FM fires back after Trump threatens to use frozen assets for shipping damage

The conflict between the US and Iran is no longer between two conflicting parties as it has extended to other fronts with Houthis attacks on Saudi oil tankers in the Red Sea on Thursday.

The surprisingly blatant attack on tankers sent shockwaves across the energy markets, soaring oil prices $100 per barrel.

In the midst of escalation, President Trump announced that the US would use frozen Iranian assets to pay for cargo and ships damaged by strikes in and around the Gulf as reported by Reuters.

He wrote on Truth Social, “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.”

Soon after this announcement, Iranian FM Abbas Araghchi slammed Trump’s threat over frozen Iranian assets for shipping damages which the US President called “ fair and equitable.”

Taking to X, the Iranian Foreign Minister responded, “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.”

Recently, the conflict in the Gulf region has reached a dangerous level with the barrage of military strikes and explosions in commercial and civilian sites in the south of the country.

Earlier, Trump also declared that for every Houthi attack, Iran will be held responsible and promised “major military punishment” against Tehran.