ICJ: US to Pay Compensation For Frozen Iranian Assets

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Facts

  • On Thursday, the International Court of Justice (ICJ) ordered the US to pay compensation to Iranian companies after ruling that Washington had illegally allowed courts to freeze their assets.1
  • The decision is a partial victory for Iran, with compensation to be determined later. However, in a blow for Tehran, the World Court said it doesn't have jurisdiction over $1.75B in frozen assets from Iran's central bank.2
  • Iran had asked the court to free up the nearly $2B in Iranian central bank assets, which US authorities froze so they could be paid in compensation to victims of a 1983 bombing in Lebanon and other attacks linked to Iran.3
  • In a 10-5 majority ruling, the ICJ ruled that while some of the US’ actions to seize assets breached the 1955 Treaty of Amity, the Iranian central Markazi Bank doesn’t have jurisdiction over the $1.75B held in a Citibank account in New York.4
  • While the World Court's decisions are binding, it has no way of ensuring they are fulfilled, with both the US and Iran among several countries that have previously dismissed its rulings.1
  • The contentious judgment comes amid rising tensions over recent US strikes on Iran-linked groups in Syria and Tehran's nuclear program and its support for Russia.5

Sources: 1Al Jazeera, 2Reuters, 3Associated Press, 4The times of israel and 5Yahoo news.

Narratives

  • Pro-establishment narrative, as provided by United states department of state. The ICJ’s ruling — which rejected the majority of Iran's case — is a massive victory for the US and the victims of Tehran's state-sponsored terrorism. Citing the Treaty of Amity, Iran sought to avoid its responsibility toward the families of the US peacekeepers who were killed in the 1983 bombing of the Marine Corps barracks in Beirut — a futile effort thanks to this decision.
  • Establishment-critical narrative, as provided by Irna. While the ruling allows the US to escape accountability for its illegal seizure of Iran's Central banks' assets, in the long run, this is a major win for Tehran as it legitimizes its position and fractures the US' long-held — and arrogant — notion that it's untouchable. Vindicated by the ICJ’s decision, Iranian companies that have been preyed on by Washington are a step closer to justice.