The U.S. government is preparing to divert Iranian assets to Gulf nations to help fund reconstruction and repair damage attributed to Iran, according to a source familiar with the discussions. The move comes as Tehran followed its recent barrage of strikes on Kuwait and Bahrain with additional drone launches.
U.S. Treasury Secretary Scott Bessent has instructed a team to calculate the cost of damage Iran has already caused to American partners in the Gulf, the source said. The U.S. is also considering tapping Iranian assets to cover repairs for any future attacks.
The development surfaced a day after Mohsen Rezaei, an adviser to Iran’s supreme leader, told CNN that ending the three‑month conflict depended on releasing $24 billion in Iranian assets frozen by Washington. The source did not specify which assets the Treasury is reviewing, and the wording surrounding the new measures did not indicate a focus solely on frozen funds.
The potential rerouting of Iranian assets risks adding new tension to the fragile ceasefire between Washington and Tehran, which faced fresh strain this weekend amid reciprocal strikes.
Peace efforts appear to have stalled, though Pakistan’s mediating minister traveled to Tehran on Saturday carrying a letter for Supreme Leader Ayatollah Mojtaba Khamenei, according to Iran’s semi‑official ISNA news agency.
Early Saturday, U.S. forces hit Iranian coastal radar facilities in Goruk and on Qeshm Island in the Strait of Hormuz after downing Iranian drones that U.S. Central Command said endangered maritime traffic. The U.S. military later reported shooting down two more Iranian attack drones threatening shipping in the strait.
Iran’s Revolutionary Guard said it responded by striking U.S. bases in Kuwait and Bahrain. Kuwait’s army reported intercepting seven ballistic missiles that passed over residential neighborhoods, causing property damage but no injuries.
In Bahrain, sirens sounded and residents were urged to take shelter. Both Kuwait and Bahrain condemned the attacks.
Iran subsequently claimed it had targeted U.S. bases in both countries with ballistic missiles, but the U.S. military said six were intercepted and a seventh fell short of its target.
The U.S. and Iran have been pursuing largely indirect talks for an interim agreement to halt the three‑month conflict, leaving broader issues such as Iran’s nuclear program for later negotiations. However, the two sides have yet to reach an accord and continue to clash intermittently.
