Iran says it will bar vessels from countries or companies that accept compensation from its frozen assets from transiting the Strait of Hormuz. The warning follows a U.S. proposal to use blocked Iranian funds to compensate ships damaged during the recent conflict.

Iran warns of Strait of Hormuz transit ban over frozen asset compensation plan.

Tehran says vessels linked to recipients of compensation from frozen Iranian assets will be barred from the strategic waterway.

Iran warned Tuesday that it would bar vessels belonging to any country or company that accepts compensation from its frozen assets from transiting the Strait of Hormuz, in response to a U.S. proposal to use blocked Iranian funds to compensate ships damaged during the recent conflict.

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The warning came in a video message broadcast by Iranian state media, in which a spokesman for Iran’s Khatam al-Anbiya Central Headquarters said the measure was prompted by U.S. President Donald Trump’s announcement that compensation for ships damaged during the recent conflict would be paid from Iran’s frozen assets.

The spokesman said vessels affected during what he described as the war imposed on Iran were damaged because of insecurity created by the U.S. military and by using what he called an “illegal and unsafe southern route” through the Strait of Hormuz.

Iran rejected US President Donald Trump’s claim that ships damaged by Iran in the Gulf would be compensated from frozen Iranian funds.

IRGC spokesperson Ebrahim Zolfaghari warned that any vessel taking such money will be banned from transiting the Strait of Hormuz. pic.twitter.com/yqtFk5NcZL

— Al Jazeera Breaking News (@AJENews) July 28, 2026

He warned that any country or company accepting compensation from Iran’s frozen assets under the U.S. proposal would face consequences.

“From now on, the Armed Forces of the Islamic Republic of Iran will not allow any of their vessels to pass through the Strait of Hormuz,” he said.

The spokesman also warned Trump of what he described as the consequences of the “illegal” decision to use Iran’s frozen assets to compensate damaged vessels.

The warning ties access to the Strait of Hormuz, one of the world’s most strategically important shipping routes, to the proposed use of Iran’s frozen assets, signaling a further escalation in tensions following the recent conflict.

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