Trump Taps US Funds to Pay for Iranian Damage
US President Donald Trump has announced a new policy to combat escalating Iranian attacks on oil tankers in the Strait of Hormuz. The policy involves paying for damages caused by Iran-backed Houthi rebels using US-controlled funds.
In a statement posted on Truth Social, Trump wrote that any damage done to ships, cargo, or related assets would be paid for with Iranian money held by the United States. He emphasized that this is 'the fair and equitable thing to do.'
The move comes after recent attacks on two Saudi ships in the Red Sea, which have sent oil prices soaring above $100 a barrel. The Houthi rebels announced a blockade of Saudi oil earlier in the week, sparking fears of disrupted shipping in both the Red Sea and Strait of Hormuz.
Iran has been responsible for months of attacks on commercial vessels in the Strait of Hormuz, effectively blocking one of the world's key energy transit hubs. Trump hinted at a potential 'massive attack' on Iran during an interview with Axios, stating that he is 'close to making a decision.'