Trump says U.S. will use frozen Iranian assets to pay for damage as conflict escalates

U.S. President Donald Trump has said that as the conflict with Iran continues, the cost of repairing damage caused during the fighting will be paid using Iranian assets frozen by the United States.

The U.S. military announced that it carried out strikes on Iran for the 13th consecutive night, while Iranian state media reported that four people were killed and five others injured in the latest attacks.

The strikes followed claims by the Iran-backed Houthi movement in Yemen that it had attacked two Saudi oil tankers in the Red Sea.

The attacks have heightened concerns over disruptions to global maritime trade and have contributed to another sharp increase in global oil prices.

Iranian state media reported explosions at key military and commercial sites in southern Iran, including the strategic port city of Bandar Abbas and Qeshm Island.

Trump had previously vowed to respond forcefully to attacks carried out by Iran and the Houthis against U.S. allies and American interests.

The U.S. military said the latest operation was intended to reduce Iran’s ability to threaten civilian shipping.

The U.S. Central Command (CENTCOM) said it targeted Iranian military command centers, drone storage facilities, communications networks, and infrastructure used to coordinate maritime operations.

As Washington continues efforts to secure navigation through the Strait of Hormuz, concerns are growing that the Iran-backed Houthis could launch further attacks on vessels operating in the Red Sea.

Those fears have helped push crude oil prices above $100 per barrel, marking the first time they have reached that level since May.

As both sides continue exchanging strikes, Trump said that the damage being inflicted on ships operating in the region would be paid for using Iranian assets under U.S. control, adding that the available funds were “very substantial.”

Iranian Foreign Minister Abbas Araghchi rejected Trump’s remarks, saying:

“Those who celebrate or profit from such assets should remember that once governments become accustomed to confiscating people’s property, no one’s assets will remain secure.”

Despite continued fighting throughout June, the United States and Iran had previously agreed to a 14-point framework aimed at halting military operations, reopening the Strait of Hormuz, and working toward a comprehensive ceasefire within 60 days.

However, just three weeks after the agreement was signed, Trump declared the ceasefire over, accusing Iran of attacking vessels in the Strait of Hormuz, prompting retaliatory U.S. strikes.

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