U.S., Iran trade attacks; Trump says Iran to pay for ship damage - UPI.com

U.S. and Iran Exchange Strikes Over Strait of Hormuz; Trump Says Frozen Assets Will Cover Vessel Damage

July 24 (UPI) -- U.S. Central Command conducted strikes on Iranian military sites Thursday night, while Iranian forces launched retaliatory drone attacks on U.S. positions in Jordan and Bahrain early Friday. President Donald Trump stated that compensation for damage to commercial vessels in the Strait of Hormuz would come from Iranian assets held by the United States under sanctions.

Central Command reported that its operations, completed at 9 p.m. EDT Thursday, lasted two hours and 15 minutes. Targets included command centers, drone storage facilities, communications networks, coastal surveillance sites and maritime capabilities. State media Islamic Republic of Iran Broadcasting reported explosions in Ahvaz, Bandar Abbas, Omidiyeh, Qeshm, Andimeshk and southern Khorramabad. Local officials in Bandar Abbas said two people were injured.

Bahrain’s Ministry of Interior confirmed air-raid sirens and advised residents to seek shelter. The Iranian Army said it had carried out drone strikes on U.S. bases in Jordan and Bahrain in response.

The current round of exchanges forms part of a conflict that began after U.S. and Israeli strikes on Iran in late February 2026. Iran subsequently imposed restrictions on tanker traffic through the Strait of Hormuz, a key route for oil and gas shipments. Maritime traffic had moved freely until those February strikes. A memorandum of understanding signed in mid-June aimed to establish conditions for ending hostilities, but fighting resumed earlier this month over differing interpretations of the document’s provisions on transit authority. Iran maintains the agreement recognizes its oversight of passage; the United States maintains the text commits both sides to unimpeded navigation.

Central Command said its latest strikes were intended to reduce Iran’s capacity to interfere with vessels. The command stated that the waterway remains open and that commercial ships continue to transit with U.S. military support. Iranian forces have conducted attacks on tankers attempting passage since the February escalation, according to U.S. statements.

Late Thursday, Trump announced that costs from damage to ships in the strait would be covered by Iranian assets frozen under U.S. sanctions, which total several hundred million dollars. “These damages may be very substantial but, nevertheless, this is the fair and equitable thing to do,” the statement read.

Iranian Foreign Minister Seyed Abbas Araghchi responded that using another country’s frozen assets to settle unrelated future claims sets a precedent with broad implications. He warned that governments that normalize such measures place all foreign-held assets at risk and that resulting instability would affect multiple parties.

The article reports no additional international legal assessments of the asset proposal beyond the Iranian statement. U.S. officials have previously described the frozen funds as subject to sanctions authorities enacted over multiple years. No court ruling or third-party legal opinion on the specific compensation plan was cited in official releases Thursday.

Maritime tracking data show that some tankers have continued voyages through the strait under escort or with adjusted routing since the February restrictions began. Energy markets recorded price increases following the initial closure measures, though exact daily figures vary by exchange.