Treasury Plans to Tap Iranian Assets to Fund Gulf Rebuilding
A source familiar with Treasury Secretary Scott Bessent's thinking stated that the Treasury Department intends to use Iranian assets to assist U.S. Gulf allies in recovering from damage caused by Iran during the ongoing conflict. The Treasury plans to utilize all available authorities to make Iranian assets accessible for rebuilding and repair efforts related to future damage inflicted by Iran.
Bessent has directed the Treasury to obtain comprehensive estimates from Gulf allies regarding the costs of repairing damage caused by Iran since the conflict began. The Treasury will also evaluate whether Iranian assets could be used to finance repairs for damage already sustained.
It remains unclear which specific assets would be used—whether Iranian cash in frozen bank accounts or hard assets such as oil tankers.
Amid indirect peace talks between the U.S. and Iran, Tehran has insisted that any deal must include lifting sanctions to release billions of dollars in frozen Iranian assets abroad.
Since the war began in late February, Iran has conducted intermittent missile and drone strikes on Gulf states, including Saudi Arabia, the United Arab Emirates, Kuwait, Bahrain, Qatar, and Oman.