Trump warns Iran: US controls frozen assets, may act economically or militarily

Banker's leverage

Former US President Donald Trump has escalated pressure on Tehran, declaring that Washington effectively controls Iran's frozen assets. In a blunt remark, he said, "I'm their banker," signalling that America holds the purse strings over billions in Iranian funds stuck overseas.

The statement came amid escalating tensions in the Strait of Hormuz, where recent talks have failed to yield a breakthrough. Trump's warning of "economic or military action" adds a new layer of uncertainty to an already volatile standoff.

Hormuz talks hit rough waters

Iran and the US have set new conditions during negotiations over the strategic waterway, through which a fifth of global oil passes. However, officials familiar with the discussions indicate that both sides remain entrenched, with no clear path to de-escalation.

Reports of a US attack on a vessel in the Gulf of Oman, allegedly over an Iran blockade violation, have further inflamed the situation. The incident underscores the fragility of maritime security in the region, even as diplomatic channels remain open.

Compensation counter-offer

In a dramatic twist, Iran had earlier sought war damages from the US. Trump has now flipped the script, sending his own bill to Tehran, demanding compensation for American deaths linked to Iranian actions. The demand has been met with defiance from Iranian officials, who dismiss the claim as baseless.

Analysts note that the compensation dispute is more than a financial squabble; it is a bargaining chip in a broader geopolitical game. Neither side appears willing to blink, raising the stakes for regional stability.

What the frozen assets mean

Iran's frozen assets, held in various foreign banks, represent a critical leverage point for Washington. By controlling these funds, the US can choke Tehran's access to hard currency, limiting its ability to finance imports or support allies.

Trump's "banker" remark underscores a transactional approach to foreign policy. Yet, experts caution that such blunt rhetoric could backfire, pushing Iran toward more aggressive posturing in the Gulf.

No deal in sight

Despite the flurry of diplomatic activity, the Strait of Hormuz deal remains elusive. Both sides have publicly committed to negotiations, but privately, mistrust runs deep. The US insists on stricter enforcement of sanctions, while Iran demands guarantees that its oil exports will not be disrupted.

As the standoff continues, the risk of miscalculation grows. A single maritime incident could spiral into a broader conflict, drawing in regional powers and disrupting global energy markets.

Observers will watch whether Trump follows through on his threats or uses them as leverage to force Tehran back to the table. The coming weeks are likely to test the limits of brinkmanship on both sides.