Key facts
- Iran's Deputy Foreign Minister Kazem Gharibabadi stated regional governments are not in a position to demand reparations from Iran.
- Gharibabadi called any seizure or allocation of Iranian assets without Tehran's consent a 'new internationally wrongful act'.
- The U.S. had reportedly explored using Iranian assets to compensate Gulf allies for war-related damages.
- Iran's assets are neither 'war spoils' for Washington nor a 'payment fund' for its allies, according to Gharibabadi.
- Iran has demanded the release of billions in frozen assets as part of its conditions to end the ongoing conflict.
Iran's Deputy Foreign Minister Kazem Gharibabadi has rejected the notion that regional governments could demand reparations from Iran, responding to reports that the U.S. might use Iranian assets to compensate its allies for war-related damages. Gharibabadi stated on X that Iran's assets were neither 'war spoils for Washington nor a payment fund for its allies.'
Reuters had previously reported, citing a source, that the U.S. intended to make Iranian assets available to Gulf allies for rebuilding and repairs related to future damage caused by Iran. The U.S. was also considering using these assets for past damages, with Treasury Secretary Scott Bessent directing a team to assess the cost of damage already inflicted on Gulf allies by Iran.
During the conflict, Iran launched missile and drone attacks on several Gulf countries, targeting what it claimed were U.S. and Israeli interests. Iran stated on Saturday that it had launched ballistic missiles at U.S. bases in Kuwait and Bahrain. The U.S. military reported intercepting six missiles, with a seventh failing to reach its target. Kuwait reported material damage but no casualties, while Bahrain urged residents to seek shelter.
Gharibabadi asserted that any seizure or allocation of Iranian assets without the consent of the Iranian government would constitute 'a new internationally wrongful act,' potentially leading to U.S. responsibility at a time when Washington claims to seek negotiation with Tehran. He warned that such a move would prompt an 'appropriate response' from Iran.
Iran has been seeking the release of its frozen funds as part of a framework being negotiated with the U.S. to end the conflict. Gharibabadi also noted that some regional governments had allowed their territories and facilities to be used for aggression against Iran, thus not being in a position to demand reparations. He stated these governments should fully compensate Iran for damages inflicted upon it. Tehran's demands include the release of billions of dollars in frozen assets, the lifting of U.S. and international sanctions, and recognition of its influence over the Strait of Hormuz.