Iran has issued a stern warning that it will block the passage of commercial vessels through the Strait of Hormuz if companies or countries act on United States plans to use its frozen assets to compensate for damages linked to the ongoing conflict in West Asia.

The statement was delivered by the spokesperson for Iran’s Khatam al-Anbiya Central Headquarters and carried by state broadcaster IRIB.

The spokesperson accused Washington of attempting to exploit Iran’s frozen funds to pay for vessels damaged during what Tehran described as the “imposed war” against the Islamic Republic.

The statement emphasised that damages caused to ships during the conflict, which Iran blames on US military actions and the violation of what it calls an illegal and unsafe route south of the Strait of Hormuz, would be covered by Iranian assets held abroad.

Iran warned that if any country or company accepted this plan and used Iranian funds under this title, its armed forces would prevent their vessels from transiting the Strait of Hormuz. The spokesperson directly cautioned US President Donald Trump about the consequences of what Tehran considers an unlawful move, declaring that Iran’s military would enforce restrictions on passage for those who comply with the American proposal.

This warning follows Trump’s recent post on Truth Social, where he announced that any future damages to ships, cargo, or related maritime assets would be paid for using Iranian money controlled by the United States. He acknowledged that such damages could be “very substantial” but insisted that the measure was “the fair and equitable thing to do.”

Iran’s Foreign Minister Seyed Abbas Araghchi has already condemned Trump’s plan, labelling it an “incendiary precedent.” In a post on X, Araghchi argued that confiscating another nation’s assets to settle unrelated claims would undermine international norms and destabilise the global order.

He warned that once governments normalise such confiscation, no nation’s assets would remain safe, and the resulting chaos would be neither peaceful nor manageable.

The dispute over frozen Iranian assets has become a central issue in the escalating maritime tensions. Tehran has long demanded the release of these funds, estimated by analysts to be worth between $124 billion and $167 billion, as part of negotiations with Washington.

The collapse of earlier agreements has left the matter unresolved, and the latest US move has triggered sharp backlash from Iran.

The Strait of Hormuz remains one of the world’s most critical maritime chokepoints, with a significant portion of global oil trade passing through its waters. Iran’s threat to block vessels raises the stakes in an already volatile region, where tit-for-tat strikes, rebel attacks, and competing maritime security initiatives have created a precarious environment for international shipping and energy flows.

ANI