Iran Warns Seizing Frozen Assets Could Set a Dangerous Global Precedent

Iran’s foreign minister says using or seizing Iran’s frozen assets would create a dangerous international precedent, warning of broader consequences for global financial and legal systems.

Iran has strongly criticized proposals to use its frozen overseas assets for unrelated financial claims, warning that such a move could create a dangerous precedent in international law. Iranian Foreign Minister Abbas Araghchi said confiscating another country’s assets for future claims would undermine global financial stability and weaken trust between nations.

The remarks came after US President Donald Trump suggested that any future damage to cargo ships or commercial vessels could be compensated using Iranian funds currently frozen under US control. However, the proposal did not explain the legal process through which those assets would be accessed.

Responding to the statement, Araghchi argued that using frozen state assets for unrelated claims could encourage governments to normalize confiscation, putting the financial security of every nation at risk. He warned that once such actions become accepted, no country’s overseas assets would be completely safe.

The dispute comes at a time of heightened tensions in the Middle East, where military operations and threats to key shipping routes have already increased concerns over global trade and energy supplies. Analysts say any escalation involving Iran’s overseas assets could further strain diplomatic relations and international markets.

The issue of Iran’s frozen assets has remained a sensitive point in US-Iran relations for years. Tehran continues to argue that the funds belong to the Iranian people, while Washington has linked access to the assets with broader security and sanctions policies. The latest exchange is expected to intensify international debate over sovereign assets, sanctions, and the legal limits of economic pressure.