Frozen Iranian Assets May Be Used to Fund Gulf Countries' Repairs After Wave of Strikes

07/06/2026

Frozen Iranian Assets May Be Used to Fund Gulf Countries' Repairs After Wave of Strikes

u.s. treasury secretary scott bessent

WASHINGTON, Jun 7: The United States is reportedly considering a plan to redirect Iranian assets toward Gulf states for reconstruction and repair of damage attributed to Iran, according to a source familiar with the matter.

The source said U.S. Treasury Secretary Scott Bessent has instructed a team to evaluate the cost of damages already sustained by American Gulf allies, adding that Washington may also use Iranian assets to fund future repairs if further destruction occurs. The report did not specify the exact nature or location of the assets under review.

The development comes amid heightened regional tensions, following renewed exchanges of strikes between Iran and U.S. forces in the Gulf. Earlier, adviser to Iran’s Supreme Leader Mohsen Rezaei told CNN that progress toward a potential peace deal depended on the release of $24 billion in Iranian funds frozen by the United States.

Separately, reports indicated that U.S. forces targeted Iranian radar installations in Goruk and Qeshm Island after intercepting drones they said posed a threat to maritime traffic in the Strait of Hormuz. The U.S. military also said additional Iranian drones were shot down over the strategic waterway.

In the Gulf, Kuwait’s armed forces said seven ballistic missiles passed over residential areas, causing material damage but no casualties, while Bahrain reported air raid sirens and urged residents to take shelter. Both Kuwait and Bahrain condemned the attacks as regional tensions continued to escalate despite ongoing diplomatic efforts involving mediators.