Key facts
- US government exploring redirecting Iranian assets to Gulf states for reconstruction.
- Treasury Secretary Scott Bessent directed assessment of damage costs inflicted by Iran.
- Iranian assets may be used for repairs of damage already inflicted.
- Initiative follows recent strikes by Iran against Kuwait and Bahrain.
- US military struck Iranian coastal radar sites in the Strait of Hormuz.
The U.S. government is reportedly exploring a plan to redirect Iranian assets to Gulf states for the purpose of rebuilding and repairing future damage caused by Iran. U.S. Treasury Secretary Scott Bessent has also instructed a team to assess the costs of damage already inflicted on Gulf allies by Iran, with the intention of using Iranian assets for these repairs as well. This initiative comes in the wake of recent attacks by Iran against Kuwait and Bahrain. A source familiar with the matter indicated that the Treasury is examining various types of assets, and the measures described were not limited to frozen assets. Separately, an adviser to Iran's supreme leader stated that a peace deal was contingent on the release of $24 billion in Iranian assets frozen by the United States. Peace negotiations between the U.S. and Iran appear to have stalled, despite ongoing mediation efforts. The U.S. military reported striking Iranian coastal radar sites in the Strait of Hormuz early Saturday, following Iran's launch of drones that threatened maritime traffic. Iran's Revolutionary Guard claimed retaliation against U.S. bases in Kuwait and Bahrain, though the U.S. military stated most missiles were intercepted. The Trump administration is seeking to redirect frozen Iranian assets toward rebuilding energy and other infrastructure damaged by Tehran's retaliatory strikes in Gulf Arab states hosting US military bases. The Treasury Department plans to use “all available authorities” to make Iranian assets accessible for rebuilding and repair efforts linked to any future damage caused by Iran. Bessent has directed Treasury officials to assess conditions among US allies in the Persian Gulf and request comprehensive estimates for damage inflicted since the start of the conflict. The department will also consider whether Iranian assets could be used to cover “past damage,” blamed on Iran-backed groups. Washington has rejected the demands, as President Trump has repeatedly criticized his predecessor Barack Obama for allegedly sending Iran billions of dollars in “pallets of cash” under the 2015 deal. Energy facilities in Saudi Arabia, the United Arab Emirates, Kuwait and Bahrain have all sustained damage in tit-for-tat strikes, before a Pakistan-brokered ceasefire took effect in April.