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US Treasury vows to seize Iranian funds for Gulf allies' damages

Created at 11 Jun · 2:10 PM1 source↑ Market-relevant
IN SHORT

US Treasury Secretary Scott Bessent stated that any damage Iran inflicts on Gulf allies will be paid for with funds extracted from Iranian accounts. This warning accompanies fresh threats from President Donald Trump to launch new strikes and seize Iranian oil infrastructure.

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Who's Involved

Scott Bessent
US Treasury Secretary vowing to seize Iranian funds
Donald Trump
President planning new strikes on Iran

↳ Why This Matters

The US Treasury's threat to seize Iranian funds and President Trump's call for new strikes signal a significant escalation in the conflict, potentially leading to further disruption of global energy markets and increased geopolitical instability in the Middle East.

Key facts

  • US Treasury Secretary Scott Bessent stated that Iranian funds will be used to compensate Gulf allies for damages caused by Tehran.
  • Bessent warned of sharp economic consequences for Iran's attacks.
  • President Donald Trump indicated plans for new strikes on Iran and the eventual seizure of its oil infrastructure.
  • The ongoing conflict, initiated by US and Israeli strikes in late February, has disrupted energy supply chains and increased energy costs.
  • Iran's agency for collecting transit fees in the Strait of Hormuz announced its closure until further notice.

US Treasury Secretary Scott Bessent declared on Thursday that any damage Iran inflicts on its Gulf allies will be compensated by funds seized from Iranian accounts. This statement comes amid escalating tensions and threats of further military action against Tehran.

Bessent's comments on X indicated a firm stance, stating, "Any damage it inflicts on our allies in the Gulf will be paid for with funds extracted from Iranian Accounts." He further warned that Tehran's attacks "will only deepen the economic and financial consequences it faces." Additionally, he noted that any tolls collected by Iran's new agency for transiting the Strait of Hormuz would be offset by funds extracted from their accounts.

President Donald Trump also stated on Thursday morning that the U.S. would launch new strikes on Iran and eventually take over its key oil infrastructure. The conflict, which began with US and Israeli strikes targeting Iran in late February, has significantly impacted the Middle East, disrupted critical energy supply chains, and caused energy costs to surge.

Earlier, Bessent had expressed that Washington would not tolerate efforts to impose a tolling system in the Strait of Hormuz, threatening additional economic sanctions against those involved in its implementation. The agency responsible for collecting fees for passage through the Strait of Hormuz announced on Thursday that it would be completely closed until further notice.

Frequently asked questions

Bessent vowed to use Iranian funds to pay for damages that Iran causes to its Gulf allies.

The Strait of Hormuz is a critical waterway for energy transit that Iran has threatened to close.

President Trump indicated plans to launch new strikes on Iran and eventually seize its key oil infrastructure.

What Happens Next

01Iran's agency for collecting fees in the Strait of Hormuz remains closed.
02Further US strikes on Iran are anticipated.
03The US may implement additional economic sanctions related to the Strait of Hormuz.

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Cadence

How It Developed

US Treasury Secretary Scott Bessent vowed to use Iranian funds to pay for damages inflicted on Gulf allies.
Bessent stated that any damage Iran causes will be paid for with funds extracted from Iranian accounts.
President Donald Trump announced plans for new strikes on Iran and to seize its key oil infrastructure.
The United States and Israel launched strikes targeting Iran in late February, escalating regional conflict.
The conflict has disrupted key energy supply chains and sent energy costs soaring.
Bessent previously warned against Iran's imposition of a tolling system in the Strait of Hormuz.
Iran's agency for collecting fees for transiting the Strait of Hormuz stated it would be closed until further notice.

Sources

T1
US Treasury chief Bessent vows to tap Iran funds for its damage on Gulf alliesThe Economic Times

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