Iran has condemned U.S. President Donald Trump’s proposal to use frozen Iranian assets to compensate for damage to ships operating in and around the Strait of Hormuz, warning that the move could have far-reaching global consequences.
According to The Times of Israel on Friday, July 24, 2026, Iranian Foreign Minister Abbas Araghchi described the proposal as a dangerous escalation that could undermine international financial norms.
Responding on social media, Araghchi argued that allowing governments to confiscate another country’s assets over political or military disputes would set a troubling precedent. “Those who celebrate or profit from such funds should remember: once governments normalize confiscation, no one’s assets are safe,” he said.
He warned that such a policy could fuel widespread instability and create consequences that would be difficult to contain.
Trump’s proposal followed his statement that the United States intended to use Iranian assets under Washington’s control to compensate for losses suffered by ships or cargo damaged during the ongoing confrontation in and around the Gulf, further escalating tensions between the two countries.
