World Court rules US illegally froze some Iran assets, must pay compensation

In a blow for Tehran, however, the judges say they do not have jurisdiction over US$1.75 billion in frozen assets from the country’s central bank

The ruling comes amid heightened tensions between the United States and Iran after tit-for-tat strikes between Iran-backed forces and US personnel in Syria

2-MIN READ2-MIN

The case before the International Court of Justice was initially brought by Tehran against Washington for allegedly breaching a 1955 friendship treaty. Photo: Reuters

Published: 2:24am, 31 Mar 2023

In a partial victory for Iran, judges at the International Court of Justice (ICJ) on Thursday ruled Washington had illegally allowed courts to freeze assets of some Iranian companies and ordered the United States to pay compensation, the amount of which will be determined later.

However, in a blow for Tehran, the World Court said it did not have jurisdiction over US$1.75 billion in frozen assets from Iran’s central bank.

Acting Legal Adviser Rich Vise of the US State Department said in a written statement that the ruling rejected the “vast majority of Iran’s case”, notably where it concerned the assets of the central bank. “This is a major victory for the United States and victims of Iran’s state-sponsored terrorism,” Vise added.

In a reaction shared by Iran’s foreign ministry on its Telegram channel it hailed the decision as “highlighting the legitimacy” of its positions and “expressing the wrongful behaviour of the United States”.

Iran’s agent Tavakol Habibzadeh (second left), US agent Richard Visek (in focus) and delegation members wait for judges to enter the International Court of Justice in The Hague on Thursday. Photo: AP

The ruling comes amid heightened tensions between the United States and Iran after tit-for-tat strikes between Iran-backed forces and US personnel in Syria last week.

Relations have been strained after attempts to revive a 2015 nuclear deal between Iran and major world powers stalled, and as Iranian drones are being used by Russia against Ukraine.