President Donald Trump on Thursday said Iranian money under U.S. control should be used to pay for damage to ships and cargo as he threatened a potentially massive new attack on Iran over Tehran's continued threats to commercial shipping.
"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 in a post on Truth Social.
"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 did not specify to which Iranian funds he was referring or explain the legal mechanism by which they could be used to compensate victims.
His post came after Iran-backed Houthi terrorists claimed responsibility for missile and drone attacks on the Saudi oil tankers Encelia and Layla in the Red Sea.
The Houthis said the vessels violated a blockade imposed by the group.
Trump warned earlier Thursday that Iran would be held responsible for future Houthi attacks and could face "major military punishment." The attacks sent oil prices above $100 a barrel and heightened concerns about maritime security in the Red Sea and Strait of Hormuz.
The president also told Axios that he was nearing a decision on whether to launch a significantly expanded military operation against Iran.
"I am considering a massive attack. Bigger than ever before. I am close to making a decision. We are all set for it," Trump said.
Trump said Iran "want to negotiate" but was not yet prepared to reach an agreement. The United States has intensified attacks on Iranian targets over the past 12 days in an effort to deter threats to commercial vessels in the Strait of Hormuz.
Under long-standing U.S. sanctions, Iranian government property and interests in property that enter the United States or come under the possession or control of U.S. persons generally can be blocked or frozen by the Treasury Department's Office of Foreign Assets Control.
The precise amount of Iranian money currently under direct U.S. control is unclear. Much of Iran's restricted money is held in foreign banks rather than in the United States, though Washington can pressure foreign institutions to freeze Iranian funds through secondary sanctions.
Treasury Secretary Scott Bessent said in April that the administration had warned financial institutions in China, Hong Kong, the United Arab Emirates, and Oman that they could face secondary sanctions for handling Iranian money. He also said Iran's Gulf neighbors had become more willing to freeze Iranian funds because of Tehran's conduct during the war.
A U.S.-Iran memorandum of understanding signed in June waived U.S.-backed sanctions, allowing Iran to resume oil exports, and called for the release of restricted Iranian assets. One estimate put Iran's potential economic benefit during the agreement's 60-day negotiating period at about $30 billion, including projected oil revenue and restricted assets held abroad rather than Iranian funds under U.S. control.
Trump's statement marked the latest escalation in his response to threats against international shipping.
The United States has been enforcing a blockade on Iranian vessels and ships traveling to or from Iranian ports while allowing commercial traffic not connected to Iran to continue through the region.
The Treasury Department also has expanded sanctions against Iranian financial networks, shipping operations, and entities accused of supporting the Islamic Revolutionary Guard Corps and helping Tehran evade existing restrictions.