A US plan is being explored to channel Iranian-held assets toward rebuilding Gulf states affected by recent conflict-related damage, according to a source familiar with the discussions. The proposal comes amid continued regional tensions, including renewed drone activity following earlier strikes on Kuwait and Bahrain.
The source said the US Treasury Secretary Scott Bessent has tasked officials with estimating the financial cost of destruction attributed to Iranian operations in allied Gulf countries. The same framework could also apply to any future incidents, with Iranian assets potentially earmarked for reconstruction efforts.
This development emerged shortly after Mohsen Rezaei, an adviser to Iran’s Supreme Leader, told CNN that progress toward ending the ongoing three months conflict would depend on the release of roughly $24 billion in Iranian funds currently frozen by Washington.
Officials did not clarify which categories of assets were under review, and it remains unclear whether the plan is limited to already frozen holdings or could extend further. Analysts say the ambiguity adds uncertainty to already fragile diplomatic efforts.
The proposal risks further straining an uneasy ceasefire environment between Washington and Tehran, which has repeatedly been tested by retaliatory military actions over the weekend.
Diplomatic efforts appear to be losing momentum, though mediation attempts continue. A Pakistani minister reportedly travelled to Tehran carrying a message for Iran’s Supreme Leader, Ayatollah Mojtaba Khamenei, according to Iran’s semi-official ISNA news agency.
On the security front, US forces reportedly struck Iranian radar installations near the Strait of Hormuz after intercepting drones they said threatened maritime routes. Additional drones were also downed, according to US Central Command.
Iran’s Revolutionary Guards claimed responsibility for retaliatory strikes targeting US positions in Kuwait and Bahrain. Kuwaiti authorities reported missile activity over residential areas, causing property damage but no casualties, while Bahrain issued air raid alerts urging civilians to take cover.
Tehran later asserted it had hit US facilities in both countries, though US officials said most incoming missiles were intercepted.
Negotiations between the two sides remain indirect, with discussions focused on a possible interim arrangement. Iran continues to seek access to frozen oil revenues, sanctions relief, and reduced restrictions on its energy exports, particularly around the strategic Strait of Hormuz, a critical global shipping lane.
Meanwhile, economic pressure is mounting globally as the conflict pushes oil prices higher and fuels inflation concerns. In response, OPEC+ is expected to consider increasing output targets despite ongoing instability affecting member production capacity.
In the United States, political pressure is also growing as rising fuel costs weigh on consumers. President Donald Trump said in a recent interview that while Iran’s weapons production capability has been weakened, the country still retains a significant missile stockpile.
The broader conflict has also raised regional instability, with Israel reporting interception of incoming projectiles from Lebanon following earlier strikes that killed members of the Lebanese military in the south of the country.
Goodness Anunobi
Follow us on:
