Amid Fragile Truce, US Considers Redirecting Iranian Assets To Gulf Allies For Damage Repairs

Published 7 June 2026 · world

Amid Fragile Truce, US Considers Redirecting Iranian Assets To Gulf Allies For Damage Repairs Published By, Last Updated: June 07, 2026, 08:04 IST The fate

Amid Fragile Truce, US Considers Redirecting Iranian Assets To Gulf Allies For Damage Repairs Published By, Last Updated: June 07, 2026, 08:04 IST The fate of billions in Iranian funds has become a key flashpoint in US-Iran talks, with Washington exploring whether the money can pay for Gulf war damage. A file photo of Donald Trump (AP) The United States is considering redirecting Iranian assets to Gulf states to help fund repairs and reconstruction for damage caused by Tehran, according to Reuters, in a move that could further complicate already fragile negotiations aimed at extending a ceasefire between Washington and Iran. A source familiar with the matter told Reuters on Saturday that the US government would seek to channel Iranian assets toward rebuilding and repairs of future damage resulting from Iranian attacks. The source added that US Treasury Secretary Scott Bessent has directed a team to assess the costs of damage already inflicted on Gulf allies by Iran and consider whether Iranian assets could also be used to cover those repairs. The source did not specify what types of Iranian assets were being examined. Reuters noted that the language used to describe the proposal did not appear to be limited to frozen assets alone. The disclosure came a day after Mohsen Rezaei, an adviser to Iran’s supreme leader, said in an interview with CNN that progress toward a peace agreement depended on the release of $24 billion in Iranian assets frozen by the United States.

According to Bloomberg, Treasury officials have already begun an initial phase of the effort by gathering comprehensive estimates of the costs associated with repairing damage caused by Tehran since the conflict began. The report further said the administration is examining whether Iranian assets could be used not only for future reconstruction but also to reimburse Gulf allies for past damages. That could include costs linked to restoring oil infrastructure previously targeted by Iran and Iran-backed groups. Bloomberg also reported that Saudi Arabia, the United Arab Emirates, Kuwait and Bahrain have sustained damage from missile and drone attacks launched by Iran and its proxies since the conflict erupted. The initiative comes as the Trump administration seeks to maintain leverage in negotiations with Tehran. Bloomberg noted that Trump has repeatedly criticised former President Barack Obama for transferring funds to Iran and has signalled he does not want to surrender bargaining power by releasing Iranian assets. CEASEFIRE UNDER PRESSURE Reuters reported that the proposed redirection of Iranian assets risks becoming another point of friction in an already fragile ceasefire that has come under renewed strain following military exchanges over the weekend. Early Saturday, US forces struck Iranian coastal radar facilities in Goruk and on Qeshm Island in the Strait of Hormuz after intercepting drones that US Central Command said posed a threat to maritime traffic. Iran’s Revolutionary Guard subsequently announced retaliatory strikes against US bases in Kuwait and Bahrain.