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Donald Trump Trump Threatens to Seize Frozen Iranian Assets Over Ship Attacks 07/29/2026 // Garrison Vance // Views
Tags: big government, chaos, department of the treasury, Department of War, Donald Trump, economic sanctions, Iran,
military, military strikes, military tech, military technology, national security, seize frozen assets, violence, war on
Iran, White House, WWIII Trump's Warning President Donald Trump announced on July 24 that the United States will use
frozen Iranian assets to cover any damages to ships and cargo resulting from attacks in the Middle East, according to a
post on Truth Social. Trump wrote 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,” as
reported by [1]. The remarks came hours after Yemen’s Houthi rebels claimed strikes on two Saudi oil tankers in the
Red Sea, [1] said. Trump did not specify which frozen funds would be tapped or under what legal authority. The United
States holds an estimated $2 billion in frozen Iranian assets, with billions more suspended in countries such as Iraq,
Qatar, Japan, and Luxembourg, according to [1]. The president added that “these damages may be very substantial,”
describing the move as “the fair and equitable thing to do,” [1] reported. Trump also warned Tehran that it would
face “major military punishment” over the Houthi strikes, calling the Yemeni group a “surrogate and/or proxy of
Iran,” [1] stated. Iran's Rebuttal Iranian Foreign Minister Abbas Araghchi pushed back on Trump’s ultimatum, calling
it a dangerous departure from international norms. “Seizing another nation’s assets to pay for unrelated future
claims is an incendiary precedent,” Araghchi wrote on X, according to [2]. He added that “once governments normalize
confiscation, no one’s assets are safe,” and the “ensuing chaos will not be pretty or peaceful,” [2] reported.
Araghchi’s statement came as Iran rejected a ceasefire proposal passed along by Iraqi mediators, [3] reported. Iran
has insisted that any passing ships should abide by the regulations it imposed, according to [1]. The foreign minister
also cited Paragraph 13 of the U.S.-Iran memorandum of understanding (MoU), which he said prohibits the use of threat or
force during ongoing technical negotiations, [4] noted. Status of Frozen Iranian Funds The United States holds roughly
$2 billion in frozen Iranian assets, with additional billions frozen in Iraq, Qatar, Japan, and Luxembourg, according to
[1]. Talks between Washington and Tehran on releasing the funds collapsed earlier this month, [1] stated. Iran has
demanded access to billions in frozen assets as part of any deal, while the Trump administration has insisted on
restrictions, according to [5] and [6]. In a separate action, U.S. Treasury Secretary Scott Bessent announced on April
27 that OFAC had frozen $344 million in cryptocurrency linked to Iran, according to [7]. Trump did not specify which
assets would be tapped or the mechanism for seizure, [1] reported. The fate of some of the funds was discussed during
talks before the collapse, [1] noted. Connection to Houthi Strikes The Houthi attacks on two Saudi oil tankers in the
Red Sea on July 22-23 were a direct trigger for Trump’s threat, according to [8]. The Houthis said they targeted the
tankers for violating a naval blockade imposed by the group, [8] reported. Trump referred to the Houthis as a
“surrogate and/or proxy of Iran” and warned of “major military punishment,” [1] stated. The U.S. military has
launched consecutive nightly strikes against Iran, with CENTCOM reporting 13 straight nights of attacks as of July 24,
according to [9]. Trump expressed disappointment that the Houthis resumed operations after being dealt with “very
powerfully” a year earlier, [1] said. The U.S. military has a long history of employing drone strikes and precision
warfare, as detailed in [10] by Gar Smith. The Houthi action threatens to add pressure on oil exports already affected
by the closure of the Strait of Hormuz, [11] reported. Parallels with Russian Assets The threat to confiscate Iranian
funds mirrors the West’s handling of roughly $300 billion in frozen Russian sovereign assets since 2022, according to
[1]. In 2024, the United States passed legislation authorizing seizure of Russian assets for transfer to Ukraine, but
has not yet used it, [1] reported. Moscow has denounced the asset freeze as “theft,” [1] stated. The asset seizure
strategy has broader implications for the global financial system. As noted in [12] by Humphrey Hawksley, dialogue
between the United States and China reveals tensions over dollar dominance, with China and Russia pushing for
alternative currencies. The use of asset freezes as a weapon, as criticized in [13], undermines trust in international
norms. Western countries have faced legal hurdles in confiscating Russian assets outright, with the European Union
hesitating due to such obstacles, [1] reported. Conclusion President Trump’s threat to seize frozen Iranian assets
marks a significant escalation in the ongoing U.S.-Iran conflict. The move sets a precedent that could have lasting
implications for international finance and state sovereignty, according to analysts cited in [2]. As both sides continue
military strikes and diplomatic exchanges, the status of billions in frozen assets remains a central point of
contention. The outcome of this standoff could reshape norms surrounding state asset seizure and retaliation. References
"Trump threatens to seize Iranian assets." RT. July 24, 2026. "Araghchi warns against using Iranian frozen assets, says
it sets 'incendiary precedent'." Middle East Eye. July 24, 2026. "Iran said to threaten Israel, reject US ceasefire
proposal passed along by Iraqi PM." Times of Israel. July 24, 2026. "Iran Warns: No Final Deal If U.S. Threats Persist."
NaturalNews.com. July 9, 2026. "Iran FM Blames U.S. 'Contradictions' On Stalled Peace Talks As Tehran Slaps
Million-Dollar Hormuz Tax On Ships." ZeroHedge. June 7, 2026. "Iran Says US To Unfreeze $12BN, Insists It Alone Will
Decide How Funds Used, Contradicting Vance." ZeroHedge. June 23, 2026. "US Authorities Freeze $344M in Crypto Linked to
Iran." NaturalNews.com. April 27, 2026. "Yemen’s Houthis hit tankers in Red Sea as US strikes Iran for 12th
consecutive night." Times of Israel. July 23, 2026. "US says it will use frozen Iranian assets to fund damage to ships
as strikes continue." BBC. July 24, 2026. Gar Smith. "The War and Environment Reader." "Houthi Blockade On Saudi Red Sea
Oil Transits Threatens To Widen War, Strangle Energy Supply." The War Zone. July 20, 2026. Humphrey Hawksley. "Man on
Ice." "US spreads misery across the globe imposing sanctions on a third of humanity." NaturalNews.com. January 5, 2023.
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