US eyes Iranian assets for Gulf allies’ reconstruction, source says

The United States is exploring the possibility of using Iranian assets to fund reconstruction efforts in Gulf nations affected by Iran's recent attacks. A source familiar with the matter revealed that US Treasury Secretary Scott Bessent has tasked a team with assessing the costs of damage inflicted on US allies.

This potential redirection of assets follows a wave of Iranian drone launches targeting Kuwait and Bahrain. In response, US forces struck Iranian coastal radar sites in Goruk and Qeshm Island. The US military also reported shooting down multiple drones and ballistic missiles launched by Iran that threatened maritime traffic in the Strait of Hormuz.

Tehran claimed to have retaliated against US bases in Kuwait and Bahrain with ballistic missiles, though the US military stated most were intercepted. The ongoing conflict has stalled peace negotiations, despite mediation efforts. Iran is seeking access to frozen assets and sanctions relief, while the US aims to ensure safe passage through the Strait of Hormuz, a critical route for global oil traffic.

“

The US will consider using Iranian assets for repairs of any future destruction as well.