Treasury Plans to Use Iranian Assets for U.S. Gulf Allies Recovery, Source Says

Treasury Department to Utilize Iranian Assets for Gulf Allies’ Recovery

The Treasury Department plans to use Iranian assets to aid U.S. Gulf allies in recovering from damage caused by Tehran’s regime during the Iran war, according to a source familiar with Treasury Secretary Scott Bessent’s thinking.

Bessent has directed the Treasury to seek comprehensive estimates from Gulf allies regarding the costs associated with repairing damage caused by Iran since the conflict began. The department will also evaluate whether Iranian assets could be used to finance repairs for damage already sustained by Gulf allies during the conflict.

It is unclear which assets would be utilized for rebuilding, such as frozen bank accounts or oil tankers. Amid ongoing indirect peace talks between the U.S. and Iran, Tehran insists any deal would require the lifting of sanctions to release billions in Iranian assets abroad. Since late February, Iran has launched missile and drone strikes on all Gulf states, including Saudi Arabia, the UAE, Kuwait, Bahrain, Qatar, and Oman.