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Iran’s armed forces will deny passage through the Strait of Hormuz to vessels belonging to any company or country that accepts compensation drawn from Iran’s frozen assets, Brig. Gen. Ebrahim Zolfaghari, spokesperson for Iran’s Khatam al-Anbiya Central Headquarters, announced July 28.
“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,” Zolfaghari said.
Zolfaghari warned the United States that continuing down this path would carry consequences, calling the plan to tap Iran’s frozen assets an “illegal act.”
Any company or country that accepts compensation under the American proposal will be barred from the Strait of Hormuz, he said.
“The Armed Forces of the Islamic Republic of Iran will not grant passage through the Strait of Hormuz to any of their vessels,” the spokesman added.
The warning came in response to remarks by U.S. President Donald Trump, who said this week that Iranian funds under American control would be used to compensate ships damaged during the recent conflict.
“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,” Trump wrote on Truth Social on July 24.
“These damages may be very substantial but, nevertheless, this is the fair and equitable thing to do,” he added.
Trump did not specify the exact source of the funds, but billions of dollars in Iranian assets remain frozen under U.S. sanctions.
The U.S. president’s remarks came after 13 days of intense U.S. strikes on Iran and retaliatory attacks across the region. Since then, there have been several reports of progress in indirect talks between the two, with the goal of returning to the memorandum of understanding signed last month to end the war.
The Iranian warning indicates, however, that major differences remain in place, even on what is considered a minor issue like the frozen funds.
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