Iranian Deputy Foreign Minister Kazem Garibabadi strongly objected to the use of Iran's frozen assets to compensate US allies in the region for war-related damages. Garibabadi stated that regional governments are not in a position to demand compensation.
In a social media post, Garibabadi emphasized that Iran's assets are neither "war spoils for Washington" nor "payment funds for its allies." This statement came after reports that the US might use Iranian assets to support its Gulf allies.
Options Considered by the US
The report indicated that the US is considering granting access to Iranian assets to help rebuild Gulf countries and cover potential future damages. It also mentioned that these assets might be used to address past damages.
According to the report, US Treasury Secretary Scott Bessent has instructed a team to assess the financial cost of damages caused by Iran to Gulf allies. This evaluation has reignited discussions about compensation and resource use related to the war's impact in the region.
Attacks and Damage Claims in the Region
The report recalled that during the war, Iran launched missile and drone attacks targeting some Gulf countries, while Iran claimed these attacks targeted US and Israeli interests in the region. It also noted that Iran announced ballistic missile launches at US bases in Kuwait and Bahrain on Saturday.
The US military reported that six missiles were intercepted mid-air and a seventh did not reach its target. Kuwait reported material damage but no casualties, while Bahrain urged its citizens to take shelter.
Possible Iranian Response
Garibabadi stated that confiscating, transferring, or allocating these assets without Iran's consent would constitute "a new violation of international law." He argued that such a move would entail responsibility for Washington.
The Iranian official also indicated that Tehran might respond "appropriately" but did not provide details. He further claimed that some regional governments have allowed their territories and facilities to be used against Iran, thus disqualifying them from demanding compensation.
Tehran's Negotiation Demands
The report also conveyed that Iran has requested the release of part of its frozen funds as part of efforts to end the war. Tehran has also demanded the lifting of US and international sanctions and recognition of its influence over the Strait of Hormuz.
According to an April report by Rystad Energy, the cost of repairing energy-related infrastructure damaged by the conflict in the Middle East could reach up to $58 billion. This figure further intensifies discussions about the economic impact of tensions in the region.
