Iran rejects ‘frozen funds’ compensation plan and warns Hormuz transit ban as regional strikes escalate

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Ebrahim Zolfaghari

29th July 2026 – (Tehran) Iran has rebuffed assertions that vessels damaged in Gulf incidents could receive payouts from frozen Iranian funds, rejecting the notion outright. A spokesman for the Islamic Revolutionary Guard Corps, Ebrahim Zolfaghari, cautioned that any ship accepting such compensation would be prohibited from passing through the Strait of Hormuz, sharpening tensions along one of the world’s most critical energy corridors.

Amid the war of words, semi-official reports in Tehran said the IRGC had struck and halted three oil tankers in the Strait of Hormuz after they allegedly ignored warnings and followed what Iran called unsafe, unlawful routes. The Guard warned that any vessel heeding “illegal interference or orders” from the United States in the strait would face consequences, underscoring the risk of further maritime disruption.

Regional flashpoints widened on multiple fronts. In Iraq, two members of the Popular Mobilisation Forces were reported wounded in an air raid on the group’s Basra headquarters, according to the state-run Iraqi News Agency. The incident followed a series of US and Saudi strikes on targets tied to Iran-aligned militias, actions that Riyadh’s foreign ministry framed as lawful self-defence after what it described as reprehensible drone attacks on Saudi oil facilities. While Saudi Arabia said it does not seek escalation, it signalled readiness to take any necessary measures to protect its territory, citizens and assets.

Iran’s Revolutionary Guard also claimed responsibility for launching several ballistic missiles at a US base and Central Command facility in Jordan, insisting the “resistance” would continue as long as it perceived ongoing threats and unlawful actions against Iranian interests. Analysts suggested the moves may reflect a bid by Tehran to seize back the initiative after pauses in hostilities, as well as to send a direct message to Washington that it retains the capability to respond across multiple domains.