Tehran has strongly condemned United States President Donald Trump's threat to use frozen Iranian assets to compensate for potential damages to ships and cargo in the Strait of Hormuz, labeling the move an "incendiary precedent." The escalating tensions between the U.S. and Iran have intensified since early July, marked by mutual attacks and Tehran's targeting of U.S. military bases.

Trump, writing on his Truth Social platform on Thursday, stated that damages would be covered by "Iranian Money that the United States has in its possession, and controls." He described this as the "fair and equitable thing to do," even if the damages prove to be "very substantial."

Iranian Foreign Minister Abbas Araghchi responded via X on Friday morning, asserting that confiscating one country's assets to cover "unrelated future claims" sets a dangerous global standard. He warned that if governments normalize such confiscations, "no one’s assets are safe," predicting ensuing chaos.

The issue of frozen Iranian assets has been a point of contention, reportedly part of discussions within a now-defunct memorandum of understanding between Tehran and Washington aimed at de-escalating the conflict. These assets have been frozen by the U.S. and other nations for decades, with estimates of the total amount reaching approximately $100 billion.

Washington initially froze Iranian funds in 1979 following the hostage crisis at the U.S. embassy in Tehran. Trump had previously pledged "major military punishment" against Iran and its Houthi allies after the Yemeni fighters attacked two Saudi oil tankers in the Red Sea.

In a separate development, Iran's army announced Friday morning that it had launched a new series of drone attacks targeting U.S. military installations in Bahrain and Jordan, according to a statement carried by the state's Mehr News Agency.

Meanwhile, ship tracking data revealed a significant drop in tanker traffic through the Strait of Hormuz, with only one vessel crossing on Thursday, the lowest number recorded since May 7. This decline underscores the heightened risks and disruptions in the crucial waterway.

The ongoing confrontation raises questions about the potential for further escalation and the broader implications for global maritime security and international financial norms.