Iran's Foreign Minister Abbas Araghchi cautioned that using frozen state assets for future claims sets an "incendiary precedent" and could lead to global chaos, following threats from US President Donald Trump to use such assets for shipping damages.
The escalating tensions between the US and Iran, including threats of asset seizure and ongoing military strikes, risk further destabilizing the critical Strait of Hormuz and impacting global oil prices and trade routes.
US President Donald Trump has stated that frozen Iranian assets held by the US will be used to pay for "any damages to Ships, Cargo, or anything related thereto," a move Iranian Foreign Minister Abbas Araghchi condemned as an "incendiary precedent" that could lead to global chaos.
Araghchi further warned that if governments normalize confiscation, no one's assets will be safe, and any ensuing chaos would be neither "pretty nor peaceful." He also stated that the current insecurity in the Strait of Hormuz is exclusively caused by the US breach of an agreement, specifically citing "disruption of the process of implementing Iran’s commitments in accordance with the provisions of Article 5 of the Islamabad Agreement." During a meeting with Chinese Foreign Minister Wang Yi in Kazakhstan, Araghchi condemned the "brutal attacks" on Iran’s vital infrastructure and the "war crimes" committed by the US.
The exchange occurs as the US military continues its strikes on Iran for the 13th consecutive night, with Iranian state media reporting casualties. These actions follow Yemen's Iran-backed Houthis' claim to have attacked two Saudi tankers in the Red Sea, raising concerns over threats to global shipping and contributing to a spike in oil prices. The US military stated its strikes targeted "Iranian military command centers, drone storage facilities, communication networks, coastal surveillance sites and maritime capabilities" to degrade Iran's ability to threaten civilian shipping. However, threats to shipping in the Red Sea from the Houthis persist, pushing crude oil prices back over $100 a barrel. Ship-tracking data indicated a significant drop in Strait of Hormuz transits. Earlier, Trump had promised "major military punishment" against Iran for attacks by the Houthis and Iran.
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