Iran rejects using its assets to pay damages to U.S. allies

Iran's Deputy Foreign Minister, Kazem Gharibabadi, firmly rejected reports that the U.S. might use Iranian assets to compensate regional allies for war-related damages. He asserted that regional governments are "not in a position to demand reparations" and that Iran's assets are "neither war spoils for Washington nor a payment fund for its allies."

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regional governments were "not in a position to demand reparations"

Reuters had cited a source familiar with the matter indicating that the U.S. would make Iranian assets available to Gulf allies for rebuilding and repairs, and potentially for past damages. U.S. Treasury Secretary Scott Bessent had reportedly directed a team to assess the cost of damage inflicted by Iran on Gulf allies. Iran has previously launched missile and drone attacks targeting U.S. and Israeli interests in the region.

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Iran's assets were "neither war spoils for Washington nor a payment fund for its allies".

Gharibabadi warned that any seizure, transfer, or allocation of Iranian assets without government consent would constitute "a new internationally wrongful act." He stated this would create U.S. responsibility, particularly at a time when Washington claims to be seeking negotiation and understanding with Tehran. Such a move, he added, would prompt an "appropriate response" from Iran.

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any seizure, transfer or allocation of Iranian assets without the consent of the Iranian government would constitute "a new internationally wrongful act"

Iran has been seeking the release of its frozen funds as part of negotiations to end the war. Gharibabadi also accused some regional governments of placing their territory and facilities "at the service of aggression against Iran," arguing they should compensate Iran for damages instead. Tehran's demands for ending the war include the release of billions in frozen assets, lifting sanctions, and recognition of its influence over the Strait of Hormuz.

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some regional governments had placed their territory and facilities "at the service of aggression against Iran" and were therefore not in a position to demand reparations.