Middle East

US weighs using Iranian assets to compensate Gulf states for Iran war damage

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.

Share
Published by
David Rosenberg
Tags: Arab Gulf States Iran Iran war Trump administration

Recent Posts

  • World News

Trump, Netanyahu project unity on Iran after White House meeting

Netanyahu described the talks as one of the most productive he has held with an…

2 minutes ago
  • Videos

WATCH LIVE: President Trump speaks at the memorial service for Senator Lindsey Graham

President Trump, joined by senior members of the administration and Prime Minister Netanyahu, gathered for…

2 hours ago
  • Israel News

Herzog marks Majdal Shams attack, launches Druze plan

IDF International Spokesperson Lt. Col. Ariella Mazor published a video on X commemorating the 12…

2 hours ago
  • World News

US envoy attacks Belgian anti-circumcision activist

Friedman, who describes himself as a rabbi, is not recognized by Belgium’s mainstream Jewish community,…

3 hours ago
  • Videos

WATCH: Israeli unknowingly donates kidney to brother of man who saved his life in terror attack

In an extraordinary twist of fate, Yonatan Rom discovered that the man receiving his altruistically…

3 hours ago
  • Jewish Diaspora & Antisemitism

Over 12 Torah scrolls stolen from Paris suburb synagogue

France recorded 1,320 antisemitic incidents in 2023, accounting for 53% of anti-religious acts, according to…

3 hours ago