WASHINGTON D.C July 27, 2026 – President Donald Trump said Monday that the United States will use Iranian money it controls to cover damages to ships and cargo caused by attacks linked to Iran, particularly in the critical Strait of Hormuz oil shipping lane.
Speaking to reporters aboard Air Force One, Trump responded to a question about whether the US would directly compensate shipping companies: “We’re going to use Iran’s money to pay for the damage they did. In other words, the Iran money that we control will be used to pay for damages.”
The White House Rapid Response account shared a video clip of the remarks later Monday, quoting the president’s statement.
The comments reinforce a Truth Social post Trump issued on July 23, in which he declared: “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. These damages may be very substantial but, nevertheless, this is the fair and equitable thing to do.”
The policy comes amid heightened US-Iran tensions that have disrupted commercial shipping through the Strait of Hormuz, a vital global energy chokepoint. Iranian forces and affiliated groups have targeted vessels in the region, prompting US military responses and raising insurance costs and risks for maritime operators.
US officials have long held billions in Iranian assets frozen under sanctions. Trump framed the approach as ensuring American taxpayers are not burdened by the costs of Iranian actions, instead directing those controlled funds toward compensation.
Iran has previously criticized the use or seizure of its frozen assets, with officials warning of broader implications for international financial norms. Shipping traffic through the strait has faced intermittent disruptions as the conflict continues.
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