The US administration is considering using frozen Iranian state assets to finance reconstruction and recovery efforts in the Gulf region. The plan aims to support countries that may suffer damage from future Iranian attacks and to cover infrastructure losses from past assaults.
It is reported that the team of US Treasury Secretary Scott Bessent is preparing to request damage assessments by reviewing the security and economic situation across the Gulf. Officials are gathering detailed cost calculations for damages incurred since the conflict began.
Seeking New Uses for Iranian Assets
The Treasury Department is reportedly working on legal and financial mechanisms to redirect frozen Iranian funds. Washington's goal is to integrate these resources into a regional defense and recovery strategy.
The plan could also establish a retrospective compensation framework for repairing areas damaged by Iran's past attacks. This approach envisions using the frozen assets to address regional damages rather than returning them directly to Tehran.
Iran-Linked Missile Attacks Heighten Tensions
This development follows new missile attacks reportedly launched from Iranian territory. Kuwait and Bahrain announced that their air defense systems intercepted multiple incoming ballistic missiles.
The US aims to link the frozen assets directly to the destruction caused by these attacks, sending an economic deterrent message to Iran. The goal is to increase the cost of cross-border bombardments.
Debate Over $24 Billion Claim
The initiative complicates the diplomatic dispute over the frozen reserves. Senior Iranian military officials have indicated that a deal might be possible if Washington releases $24 billion in frozen Iranian assets.
In this proposal, $12 billion would be released immediately upon signing a provisional agreement, with the remaining $12 billion freed in subsequent implementation phases. Iranian officials described this as a "test of trust" for the US administration.
US officials remain cautious about an early release of large-scale assets, maintaining that such a move would weaken a significant diplomatic leverage.
The Iranian side warns that if negotiations fail, tensions will not remain confined to the Gulf. Statements have cautioned that maritime routes could be affected as far as the Indian Ocean, Bab el-Mandeb Strait, Red Sea, and Mediterranean.
The US preparation to use frozen Iranian assets for reconstruction and security objectives appears to simultaneously escalate the economic and diplomatic dimensions of the regional conflict. If implemented, the plan would establish a new financial framework for compensating damages in the Gulf.
