Tehran [Iran], July 24 (ANI): Iranian Foreign Minister Seyed Abbas Araghchi on Friday slammed US President Donald Trump's plan to use Iranian assets held by Washington to compensate for damages to ships and cargo transiting through strategic maritime waterways in West Asia, calling the move an 'incendiary precedent'.

In a post on X, Araghchi warned that confiscating another country's assets to settle unrelated claims would undermine international norms and create wider instability.

'Seizing another nation's assets to pay for unrelated future claims is an incendiary precedent. Those who celebrate or profit from such funds should remember: once governments normalize confiscation, no one's assets are safe. Ensuing chaos will not be pretty or peaceful,' the post read.

His remarks came after Trump, in a post on Truth Social, said that any future damages caused to ships, cargo or related maritime assets would be paid for using Iranian money held and controlled by the United States.

'Please let this statement serve to represent, until further notice, that from this point forth, any and all damages done to Ships, Cargo, or anything related thereto, will be paid for by Iranian Money that the United States has in its possession, and controls,' Trump said in his post.

He added that the damages 'may be very substantial' but described the move as 'the fair and equitable thing to do.'

Trump's statement comes after Yemen's Houthis claimed responsibility for an attack on two Saudi oil tankers in the Red Sea.

Brigadier General Yahya Saree Qasim Saree, the official spokesperson for the Houthis, claimed in a statement on Telegram that the group's forces targeted two Saudi oil tankers identified as 'ENCELIA' and 'LAYLA'.

The Saudi Press Agency (SPA), citing the Saudi Arabia's Transport General Authority (TGA), confirms that the Saudi-owned vessel ENCELIA was targeted while transiting the Red Sea, through the Bab el-Mandeb Strait, resulting in a fire at the bow of the ship.

Iran has also been targeting commercial vessels in the Strait of Hormuz for non-compliance.

Later, Trump, in another post on Truth Social, stated that Washington will hold Tehran directly accountable if the rebel group executes further attacks on maritime vessels.

The lifting of sanctions on its frozen assets was a major demand from Tehran during the memorandum of understanding reached with Washington in June, although the agreement has collapsed.

According to CNN, the exact value of Iran's blocked funds remains unclear, as the assets are held across multiple financial systems worldwide.

Iranian media reports and analysts have estimated the total amount to be between USD 124 billion and USD 167 billion, CNN reported. (ANI)