US eyes Iranian assets for Gulf allies' reconstruction, source says
The US plans to redirect Iranian assets to Gulf allies for rebuilding damage caused by recent Iranian strikes, while peace negotiations stall amid continued skirmishes. Iranian adviser Mohsen Rezaei links a potential ceasefire to the release of $24 billion in frozen US assets, as tensions escalate in the Strait of Hormuz and Lebanon.
The US government is considering redirecting Iranian assets to Gulf allies—Kuwait and Bahrain—to fund repairs for damage caused by Iran’s recent attacks, according to a source familiar with the matter. Treasury Secretary Scott Bessent has ordered an assessment of destruction costs, with plans to use Iranian assets for future repairs if needed. This move follows Iran’s drone strikes on Kuwait and Bahrain, which prompted retaliatory US strikes on Iranian radar sites in Goruk and Qeshm Island in the Strait of Hormuz. Iran’s Revolutionary Guard claimed retaliation against US bases in Kuwait and Bahrain, though the US military reported intercepting six of seven ballistic missiles launched by Iran. Kuwait’s army confirmed missile engagements over residential areas, resulting in material damage but no casualties. Bahrain issued shelter-in-place warnings, while Iranian state media reported Pakistani Interior Minister Mohsin Naqvi delivering a 'special letter' from Pakistan’s military and government to Supreme Leader Ayatollah Mojtaba Khamenei. Peace talks remain stalled despite Pakistan’s mediation efforts, with Iran demanding access to frozen oil revenues, sanctions relief, and control over the Strait of Hormuz—a critical global shipping route now partially blocked. The US has destroyed most of Iran’s drone and missile manufacturing facilities but acknowledges Iran retains about 21% of its missile arsenal, per President Trump’s latest assessment. The conflict has disrupted oil supplies and supply chains, exacerbating global economic strain. In parallel, Israel’s strike in Lebanon killed two Lebanese army officers and a soldier, adding to regional instability. Iran insists on a ceasefire tied to asset releases, while the US seeks to mitigate further damage to Gulf allies and global trade routes.
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