Treasury Secretary Scott Bessent is preparing a new initiative that would use Iranian assets to help Gulf allies recover from damage caused by Iranian attacks, according to a source familiar with the matter.
The proposal would direct Treasury officials to examine ways Iranian funds could be used to assist regional partners that have suffered infrastructure damage and economic losses since the conflict began.
“Treasury will utilize all tools available to allow Iranian assets to be made available to our Gulf allies to support rebuilding and repairs for any future damage caused by Iran,” the source told The New York Post.
As part of the effort, Bessent has reportedly instructed his team to gather detailed assessments from Gulf allies regarding the costs associated with repairing damage linked to Iranian military actions.
According to the source, Treasury officials are seeking comprehensive estimates covering both recent attacks and potentially earlier incidents tied to Iran.
“Treasury will further consider whether Iranian assets could be used to support repairs for past damages,” the source said.
No specific dollar amount has been attached to the proposal.
The source also did not directly reference Iran’s estimated $24 billion in frozen assets, though those funds have emerged as a major issue in ongoing discussions aimed at ending the conflict that began on Feb. 28.
Iran’s economic position has weakened significantly during the conflict. The country’s oil revenue has been squeezed by a U.S. naval blockade ordered by President Trump after maritime traffic through the Strait of Hormuz was severely disrupted.
The rebuilding proposal surfaced as tensions escalated again in the Gulf region.
U.S. Central Command announced Saturday that Iran launched seven ballistic missiles toward Kuwait and Bahrain. The latest attack followed strikes last week that reportedly damaged Kuwait’s airport, killing one person and injuring more than 60 others.
Meanwhile, negotiations between Washington and Tehran appear stalled.
Mohsen Rezaei, a senior adviser to Supreme Leader Mojtaba Khamenei, told CNN on Friday that talks have reached a “deadlock.”
According to Rezaei, one of the major sticking points remains Iran’s demand that the United States release approximately $24 billion in frozen Iranian assets.
The Trump administration has not publicly indicated whether any of those funds could ultimately be released as part of a broader agreement. However, Bessent’s emerging proposal suggests the administration may instead seek ways to redirect Iranian assets toward compensating regional allies affected by the conflict.
The idea would represent a significant shift in how frozen Iranian funds are handled and could become a major point of contention in any future negotiations between Washington and Tehran.
The post Bessent Eyes Using Iranian Assets To Help Rebuild Gulf Allies After Attacks appeared first on Real News Now.
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