US President Donald Trump on Monday, 28 July said that Iranian funds held under Washington's control will be used to compensate shipping companies for damage sustained in the Strait of Hormuz during the recent conflict. The announcement, made aboard Air Force One while speaking to reporters, rules out any direct US government outlay for the claims.

What Trump Said

Trump was unequivocal when asked whether Washington would reimburse shipping companies from its own budget. 'No. No. We're going to use Iran's money to pay for the damage they did,' he said. He elaborated: 'Iran money that we control will be used to pay for damages. Sound good? Not bad, right? You should be rewarded.'

The president did not specify the total quantum of Iranian assets under US control, which shipping companies would qualify for compensation, or the mechanism through which payments would be distributed — leaving significant operational details unresolved.

Strait of Hormuz: Current Situation

Trump described conditions in the Strait of Hormuz as significantly improved following US military operations against Iran. 'Their whole shoreline is wiped out. The strait is in very good shape now, and we're talking right now,' he said. The strait is one of the world's most critical energy chokepoints, linking the Persian Gulf with the Gulf of Oman and the Arabian Sea, and serves as a primary export corridor for oil and liquefied natural gas from Gulf producers to global markets — including major energy-importing nations such as India.

Ongoing Negotiations With Tehran

Trump indicated that Washington and Tehran are currently engaged in talks, with Iran reportedly having sought a pause in hostilities as negotiations proceed. He suggested the US could resume military action if no agreement is reached. 'I think there's a good chance that something could happen. And if it does, good. If it doesn't, we go back to doing what we were doing two days ago,' he said.

According to Trump, Iran approached Washington through both intermediaries and direct communication after coming under sustained US military pressure. 'They want to meet and we're meeting. We'll see what happens. There's a chance we could make a deal. Without what we did, they wouldn't even be talking to us,' he added.

The Venezuela Parallel

Trump drew a comparison between his administration's approach to Iran and its earlier dealings with Venezuela, claiming that funds received from Caracas had covered Washington's operational costs. 'We paid for that war many times over, and that will happen with Iran also,' he said. He noted that Venezuelan funds were being used for general government expenditure and could be directed toward the military with congressional approval — suggesting a similar framework could apply to Iranian assets.

What Remains Unclear

Critical questions remain unanswered: the exact volume of Iranian assets under US jurisdiction, the legal framework for disbursing them to private shipping firms, and the timeline for any compensation. Analysts note that the use of seized sovereign assets to pay third-party claimants involves complex international legal precedents. With US-Iran talks described as active but fragile, the situation in the Strait of Hormuz — and its impact on global energy supply chains — remains closely watched.