Donald Trump said that any damage inflicted on ships in the Strait of Hormuz would be compensated using seized Iranian funds, amid mounting tensions in the strategically vital waterway. The statement signals a tougher US posture towards Iran and raises concerns over the security of a major global oil-shipping route.

The article reports that Trump framed the proposed compensation as coming from “Iranian Money” already under US control. The Strait of Hormuz is a narrow passage between Iran and Oman through which a significant share of the world’s seaborne oil trade passes, making disruption there potentially important for energy markets and international shipping.