Trump says US will use Iran funds for shipping damages

President Donald Trump warned on Thursday, July 23, 2026, that the United States will hold Iran directly responsible for future attacks by Houthi militants and announced a new policy to use frozen Iranian funds to compensate for damages to commercial shipping. These declarations sharply escalated tensions amid a series of attacks and counterstrikes between the U.S. and Iran, which have now expanded to threaten two vital maritime chokepoints.

The threats came after Iran-backed Houthi rebels in Yemen claimed responsibility for an attack on two Saudi Arabian oil tankers, the Encelia and the Layla, in the Red Sea on Wednesday, July 22. The Houthis said the vessels were targeted with missiles and drones for allegedly violating a naval blockade. Saudi state media reported a fire on one tanker but said all crew members were safe. The attack sent global oil prices surging, with Brent crude rising above $100 a barrel for the first time in nearly two months.

In a post on his Truth Social platform, Trump asserted that the Houthis are a proxy of Iran and warned that "major military punishment" would be inflicted on both Iran and the Houthis if such attacks continue. He expressed...