Iran warns states against using frozen assets for compensation

The Iranian Armed Forces will bar vessels belonging to any company or nation that accepts funds drawn from Iran’s frozen assets, the spokesperson for the Khatam al-Anbiya Central Headquarters Abolfazl Zolfaqari said in a statement on Tuesday. The statement comes in response to recent remarks by the U.S. President regarding plans to use seized Iranian funds as compensation.

“The U.S. President, following aggressive actions and ongoing attempts to destabilize the region, has announced plans to pay compensation—from Iran’s frozen assets—for vessels damaged during the imposed war against Islamic Iran due to U.S. military-induced insecurity and violations from navigating illegal, unsafe southern routes of the Strait of Hormuz,” the spokesperson stated.

Issuing a stark warning to Washington over the move, the spokesperson added: “While warning the criminal U.S. President regarding the consequences of this illegal act, we notify all companies and countries accepting Trump’s proposal to utilize Iran’s frozen assets under this pretense: from now on, the Armed Forces of the Islamic Republic of Iran will not grant passage through the Strait of Hormuz to any of their vessels.”

According to Mehr News, the warning underscores heightened tensions over Iran's frozen assets and the strategic Strait of Hormuz, a key waterway for global oil shipments.