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

The United States is exploring a significant financial maneuver, potentially redirecting Iranian assets to aid Gulf allies in rebuilding from damage attributed to Tehran's actions. A source familiar with the matter revealed that U.S. Treasury Secretary Scott Bessent has tasked a team with assessing the costs of Iran's recent strikes on Kuwait and Bahrain, with the possibility of using Iranian assets for future repairs.

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The US government will attempt to redirect Iranian assets to Gulf states for rebuilding and repairs of damage caused by Iran.

This potential asset redirection emerges as a fragile ceasefire between the U.S. and Iran faces renewed strain. The two nations engaged in further strikes over the weekend, with U.S. forces targeting Iranian coastal radar sites in the Strait of Hormuz and Iran claiming to have hit U.S. bases in Kuwait and Bahrain. While Iran stated its missiles hit U.S. bases, the U.S. military reported intercepting most of them.

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US Treasury Secretary Scott Bessent has directed a team to assess costs for damages already inflicted on Gulf allies by Iran, the source said, adding that the US will consider using Iranian assets for repairs of any future destruction as well.

Peace negotiations appear to be stalled, despite efforts by mediator Pakistan. The U.S. and Iran have been engaged in largely indirect talks for an interim deal to halt the ongoing three-month war, but progress remains elusive. Tehran is seeking access to billions in frozen oil revenue, sanctions waivers, and the lifting of a U.S. blockade on its ports, while also exerting leverage over the Strait of Hormuz, a critical global oil transit route.

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a peace deal to end the three-month war hinged on the release of US$24 billion in Iranian assets frozen by the United States.