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US to use frozen Iranian funds to compensate Gulf allies for damages, says Treasury chief

From Liberty Times · () Chinese

Translated from Chinese, summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • U.S. Treasury Secretary Scott Bessent stated that frozen Iranian assets will be used to compensate for losses incurred by Iran's attacks on Gulf allies.
  • Bessent warned that Tehran's actions would lead to severe economic consequences, with each attack escalating financial repercussions.
  • Iran's deputy foreign minister criticized the U.S. move, asserting that frozen assets are not spoils of war for Washington to disburse.

U.S. Treasury Secretary Scott Bessent announced on March 11 that the United States will utilize frozen Iranian assets to compensate allies in the Persian Gulf for damages caused by Iranian attacks. Bessent issued a stern warning, stating that Tehran's aggressive actions would result in severe economic consequences, emphasizing that each attack would only intensify the financial repercussions Iran faces.

Any damage caused by Iran to our Gulf allies will be deducted from Iran's accounts for compensation.

— Scott BessentU.S. Treasury Secretary Scott Bessent announced the plan to use frozen Iranian assets.

Bessent's declaration came shortly after President Donald Trump indicated authorization for a new wave of attacks against Iran, though current operations have been paused. Trump also suggested that a deal to resolve the conflict with Iran could be finalized within days. The ongoing conflict, which began in late February with U.S. and Israeli strikes against Iran, has disrupted crucial energy supply chains and led to a surge in energy costs across the Middle East.

Each attack launched by Iran will only make the economic and financial consequences it faces more severe.

— Scott BessentBessent warned of escalating economic repercussions for Iran's actions.

"Any damage caused by Iran to our Gulf allies will be deducted from Iran's accounts for compensation," Bessent stated on the social media platform X. He further added that any toll fees paid to the Persian Gulf Straits Authority (PGSA), a newly established Iranian entity collecting fees for passage through the Strait of Hormuz, would be offset by deductions from Iran's accounts. The Strait of Hormuz is a vital waterway for energy transport that Iran has largely controlled since the early stages of the conflict.

Any toll fees paid to the Persian Gulf Straits Authority (PGSA) will be deducted from its accounts for compensation.

— Scott BessentBessent detailed how fees related to the Strait of Hormuz would be handled.

Previously, Bessent had declared that Washington would not tolerate forced toll collection in the Strait of Hormuz and threatened further economic sanctions against parties involved. In response, Iran's Deputy Foreign Minister Kazem Gharibabadi asserted that the U.S. has no right to use Iran's frozen assets to help its regional allies rebuild from war-related damages. Gharibabadi posted on X, "Iranian assets are neither Washington's spoils nor funds to pay for its allies."

Iranian assets are neither Washington's spoils nor funds to pay for its allies.

— Kazem GharibabadiIran's Deputy Foreign Minister criticized the U.S. plan to use frozen assets.
DistantNews Editorial

Originally published by Liberty Times in Chinese. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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