Daijiworld Media Network - Tehran

Tehran, Jul 28: Iran's main military command, Khatam al-Anbiya Central Headquarters, has warned that vessels belonging to any country or company accepting compensation from Iran's frozen assets would not be allowed to transit the Strait of Hormuz.

According to Iran's state-run broadcaster IRIB, a spokesman for the headquarters rejected US President Donald Trump's statement that ships damaged during the conflict in the Gulf would be compensated using Iranian funds frozen by Washington.

The spokesman said Iran believed the damage to the vessels was caused by insecurity created by the US military and the use of what it described as an illegal and unsafe shipping route south of the Strait of Hormuz.

He said Iran's armed forces would prevent vessels of any country or company accepting such compensation from passing through the strategic waterway.

On Monday, Trump said Iranian funds under US control would be used to compensate shipping companies for damage caused to vessels in the Strait of Hormuz during the conflict.

Speaking to reporters aboard Air Force One, Trump ruled out using US government funds for the compensation.

"We're going to use Iran's money to pay for the damage they did," he said, adding that the funds controlled by Washington would be used to reimburse affected companies.

Trump, however, did not specify the amount of Iranian assets under US control, which shipping companies would qualify for compensation, or how the payments would be made.

He also claimed that conditions in the Strait of Hormuz had improved following US military operations against Iran and said Washington and Tehran were engaged in talks.

Trump further said Iran had sought a pause in attacks as negotiations continued and indicated that the United States could resume military action if no agreement was reached.