Iran’s Foreign Ministry has rejected a US plan to release frozen assets as compensation for damages caused by Iran in the Gulf, amid growing tensions between the two nations.
The move comes after Trump announced plans to unfreeze billions of dollars held in Iranian banks and transfer them to US allies. The proposal was met with skepticism from Tehran, where officials have long been wary of being used as a bargaining chip.
Iran’s Foreign Ministry spokesperson Ebrahim Zolfaghari has rejected the plan outright, stating that any vessel carrying frozen funds would be banned from transiting the Strait of Hormuz, which is a critical waterway for international trade. The strait connects the Persian Gulf to the Arabian Sea and plays a vital role in shipping between Europe and Asia.
Zolfaghari’s comments were echoed by Iran’s Revolutionary Guard Corps (IRGC), which has long been involved in regional security efforts. In a statement, IRGC spokesperson Brigadier General Hossein Salami warned that any vessel carrying frozen funds would be “banned from transiting the Strait of Hormuz”.
The US proposal was seen as an attempt to pressure Iran into releasing its frozen assets and ending its support for anti-Western groups in the region. However, Tehran has long been skeptical of such plans, citing concerns over potential consequences.
Iran’s decision not to accept Trump’s plan is likely a response to growing tensions between the two nations. The US has imposed economic sanctions on several Iranian entities, including banks and shipping companies, which could further exacerbate the situation.
The frozen funds proposal was first announced in June by US Secretary of State Mike Pompeo, who claimed that Iran had damaged its oil tankers in the Gulf during a confrontation with Saudi Arabia’s Crown Prince Mohammed bin Salman. The move sparked widespread condemnation from Tehran, where officials have long been critical of US actions in the region.
Since then, tensions between the two nations have continued to escalate, with both sides accusing each other of aggression and provocation. The situation remains volatile, with many observers warning that a conflict could have far-reaching consequences for global trade and security.
The frozen funds proposal has also raised concerns among international shipping companies, which rely on safe passage through the Strait of Hormuz to transport goods between Europe and Asia. “This is a serious escalation of tensions,” said one industry expert. “We need to see concrete steps from both sides to resolve this situation peacefully.”
As the standoff continues, it remains unclear what will happen next. However, one thing is certain: the frozen funds proposal has highlighted the deepening divisions between Iran and the US, and the potential consequences for global security.
Source: Al Jazeera
Based on reporting from Al Jazeera.
Read original source
