Trump Says Frozen Iranian Money Will Pay for Damage to Ships and Cargo

Trump declares that Iranian assets held and controlled by the United States will cover damages to ships, cargo and related property, calling the move fair and equitable.

First Published: July 23, 2026, 2:13 PM ET

WASHINGTON D.C. — Donald J. Trump declared that the United States will pay for damage to ships and cargo using Iranian assets it holds and controls, framing the move as fair and equitable.

The statement, posted on Truth Social, said the payments would cover “any and all damages” from this point forward and warned that the costs “may be very substantial.” Trump gave no figures, named no vessels, and set no timeline for how the funds would flow.

Here is the full post on Truth Social: “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. Thank you for your attention to this matter! Trump” on July 23, 2026 at 6:04 PM ET.

This is the first message released by Trump today. On average, Trump produces about 15 posts per day since his inauguration on January 20, 2025. The move fits a broader pattern in his recent messaging, with 53 of his 467 posts over the last 30 days focused on foreign policy.

The pledge raises immediate questions about which frozen Iranian funds Trump intends to tap and under what legal authority. Sanctions statutes and prior court settlements govern Iranian assets held by the United States, so redirecting them toward shipping claims would likely trigger legal challenges. Shippers and insurers stand to benefit if a fund materializes, while Tehran would lose access to money it has long sought to reclaim.

The declaration echoes phrasing Trump has used in earlier policy threats. In June, he opened a trade warning with nearly identical language, writing, “Please let this statement serve to represent that any Country that imposes such a Tax will immediately be met with a 100% TARIFF on any and all Goods sent to the United States of America,” according to pbs.org. That post targeted European nations weighing digital services taxes on American technology companies, according to expressnews.com.

For the average US reader, the practical stakes lie in shipping costs and insurance rates. Attacks on commercial vessels raise premiums that filter into the price of imported goods. A US-backed compensation pledge could reshape how carriers price risk in contested waters.

This has happened before in the sense that Washington has drawn on frozen Iranian money to settle claims. The 1981 Algiers Accords that ended the Tehran hostage crisis created the Iran-United States Claims Tribunal at The Hague to adjudicate disputes over seized assets, according to washingtonpost.com. That body has processed billions of dollars in claims across four decades.

The next move rests with the Treasury Department and the courts, which would have to authorize any transfer of controlled Iranian funds. No date for such a decision has been announced.

Seizing an adversary’s assets to pay war-related damages is a tactic as old as modern statecraft. After the Napoleonic Wars, the 1815 Treaty of Paris obliged France to pay 700 million francs in indemnities and cover occupation costs, and allied powers held French territory as security until the debt cleared in 1818. France met the payments and regained full sovereignty, yet the precedent showed how quickly forced funds could bind a defeated party to years of obligation.