President Donald Trump announced Thursday that any damage incurred by ships traversing the Strait of Hormuz would be financed by Iranian funds currently held by the United States. The declaration was made on Trump's Truth Social platform as tensions escalate in the critical Strait, a chokepoint for roughly one-fifth of global oil supply.
"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 posted. He added that while such damages could be "very substantial," this approach is "fair and equitable."
The statement followed hours after Trump indicated he was considering a "massive attack" on Iran as hostilities persist. He suggested that Iranian leaders desired a deal but had not yet experienced sufficient "pain" to negotiate effectively.
The Pentagon has increased its military presence in the region, flying a B-1 bomber over the area for the first time since a ceasefire collapsed and deploying additional special operations forces. Furthermore, 150 medics have been sent to a U.S. military hospital in Germany that treats wounded personnel from the Middle East.
President Donald Trump warned on Thursday that any damage to cargo ships traversing the Strait of Hormuz will be paid for by seized 'Iranian money'
Trump faces domestic pressure to conclude the conflict, particularly from Republicans concerned about the impact of elevated gas prices and inflation on the upcoming November midterm elections. Many Democrats have consistently opposed the war.
Secretary of War Pete Hegseth faced scrutiny during a Senate committee hearing on Tuesday, where he was criticized by a Republican senator for not providing direct answers. Hegseth testified that the war's cost has surpassed $37.5 billion, and the administration is seeking additional emergency war funding from Congress.
Despite repeated threats against Iran, the U.S. has been unable to re-establish safe passage through the Strait of Hormuz since the collapse of a memorandum of understanding. The U.S. has bombed Iranian radar and missile systems along the Strait for nearly two weeks following the ceasefire's failure.
Iranian foreign minister Abbas Araghchi responded on X, stating that Iran would retaliate forcefully against any military action. "Our defense doctrine is clear: Eye for an eye," he wrote. "Any aggression against Iran, including our infrastructure, will compel a powerful and decisive response."
Secretary of State Marco Rubio countered reporters by stating U.S. policy would be a "head for an eye" in retaliation. "They will pay a very heavy price for the things they’re doing," Rubio added.
Recent fighting has resulted in casualties for U.S. forces. Four soldiers were killed over the weekend, bringing the total death toll to 18 since the war began. Three soldiers died in an Iranian missile and drone attack on an air base in Jordan, and one died during the attempted detonation of an Iranian drone. More than 400 U.S. troops have been wounded.
A poll of 1,021 registered voters conducted between July 17 and 20 by Daily Mail/JL Partners indicated that 49 percent of respondents now believe that initiating military action in Iran was the wrong decision.