President Donald Trump (r) holds a bilateral meeting with Bahrain's King Hamad bin Isa Al Khalifa, May 21, 2017. (AP/Evan Vucci)
Trump administration mulls giving frozen Iranian assets to Gulf Arab states to fund reconstruction.
By World Israel News Staff
The Trump administration is considering redirecting Iranian assets to Gulf states to help pay for repairs and reconstruction after Iranian strikes on Kuwait and Bahrain, according to a source familiar with the matter.
US Treasury Secretary Scott Bessent has ordered a team to evaluate the cost of damage already caused to Gulf allies by Iran, the source told Reuters.
Washington is also considering using Iranian assets to cover future damage from Iranian attacks.
The source did not specify what assets are under review. The language used to describe the possible measures was not limited to frozen Iranian funds.
The disclosure came a day after Mohsen Rezaei, an adviser to Iran’s supreme leader, told CNN that any peace deal ending the three-month war would depend on the release of $24 billion in Iranian assets frozen by the United States.
The possible use of Iranian assets for Gulf reconstruction could further complicate an already fragile ceasefire between Washington and Tehran. The ceasefire was tested again over the weekend as US and Iranian forces exchanged strikes around the Strait of Hormuz.
US forces struck Iranian coastal radar sites in Goruk and on Qeshm Island early Saturday after shooting down Iranian drones that US Central Command said threatened maritime traffic. Later Saturday, the US military said it had shot down two more Iranian attack drones that were also threatening shipping in the strait.
Iran’s Revolutionary Guard said it retaliated by targeting US bases in Kuwait and Bahrain. Kuwait’s army said it engaged seven ballistic missiles that passed over residential areas, causing material damage but no casualties.
In Bahrain, sirens sounded and residents were told to seek shelter. Both Kuwait and Bahrain condemned the attacks.
Iran later said it had struck US bases in both countries with ballistic missiles. The US military said six missiles were intercepted, and a seventh failed to reach its target.
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