Trump proposes using frozen Iranian assets to pay for shipping damages

Former US President Donald Trump announced on Friday, 24 July, that he intends to use seized Iranian financial assets to compensate for damages caused to international shipping in the Strait of Hormuz. The statement, which targets billions of dollars in currently frozen Iranian funds, represents a significant escalation in proposed fiscal measures against Tehran should Trump return to the White House. Seizing frozen assets for maritime reparations The proposal focuses on capital held in international accounts that has been restricted under multiple rounds of US and international sanctions. While the exact figure of available funds remains subject to banking fluctuations, estimates of frozen Iranian assets globally exceed $100 billion. Trump specified that these funds would be redirected to cover repair costs, insurance premiums, and lost revenue for commercial vessels targeted in the Persian Gulf region. The announcement follows a series of maritime incidents in the Strait of Hormuz, a critical chokepoint through which approximately 20% of the world’s oil supply passes. Shipping companies have reported increased operational costs and security risks due to drone strikes and vessel seizures in these waters over the past several years. Legal and diplomatic implications Executing such a plan would require significant changes to existing US federal law and international financial regulations. Currently, frozen assets are typically held as leverage for diplomatic negotiations or…