Trump says Iran will pay for ship damages with frozen assets as US strikes enter 13th night

Trump's announcement

US President Donald Trump declared on July 23 that any damages to ships and cargo in the ongoing Strait of Hormuz conflict would be compensated from frozen Iranian assets held by the United States. Writing on his Truth Social platform, Trump described the measure as a "fair and just procedure," though he did not specify the legal mechanism for seizing the funds. The announcement came after weeks of escalating hostilities that began earlier in July when Iranian forces fired on commercial vessels transiting the strait, a critical artery for global oil shipments. The president did not explicitly name the Strait of Hormuz in his post, but the context was clear given the recent attacks on shipping. The United States controls billions of dollars in Iranian assets frozen under various sanctions regimes, though it is unclear how those funds could be legally redirected to private claimants.

It is a fair and just procedure.

Military escalation

The US military launched a new wave of airstrikes on Iran on the night of July 23, marking the 13th consecutive night of attacks aimed at preventing further assaults on commercial ships and sailors. The operation began at 18:45 US Eastern Time (2:15 local time in Iran on July 24), according to a statement from US Central Command. The strikes are part of a broader campaign that intensified after Iranian forces targeted merchant vessels in the strait earlier this month. Centcom said the attacks are designed to degrade Iran's ability to threaten maritime traffic.

Regional fallout

Kuwait's air defenses intercepted rockets and drones launched from Iran, with authorities attributing explosion sounds to successful interceptions. The Iranian news agency Tasnim, which is close to the Revolutionary Guards, claimed the intended target was a military base also used by the US Air Force, though this could not be independently verified. Kuwait has been among the Gulf states most affected by Iranian counterattacks in recent days, according to a joint statement issued on Thursday by the Gulf Cooperation Council and Jordan.

The GCC, comprising Bahrain, Qatar, Kuwait, Oman, Saudi Arabia, and the United Arab Emirates, together with Jordan, condemned the Iranian attacks. The group highlighted strikes on citizens and civilian infrastructure, including water desalination plants and airports, and called for an end to the hostilities. The statement noted that Gulf states have been particularly targeted by Iranian retaliatory actions.

Economic pressure

Iran has again closed the Strait of Hormuz, through which roughly a fifth of the world's oil passes, according to the Spiegel report. The closure is the latest in a series of disruptions that have plagued the waterway since the conflict began. In response, several Gulf states are accelerating work on alternative trade routes to bypass the chokepoint. The US asset seizure plan, if implemented, could further complicate Iran's already strained finances, though the practical and legal hurdles remain significant.