The Trump administration is seeking to redirect Iranian assets to help U.S. allies in the Persian Gulf rebuild from damage inflicted by Tehran and to repair any future destruction. The move follows a wave of attacks by Iran against Kuwait and Bahrain.
Treasury Secretary Scott Bessent has directed a team to assess conditions among U.S. allies in the region and request comprehensive estimates for the costs of damages already inflicted. The assets Washington is considering reallocating could include frozen funds as well as ships previously seized by the United States.
These disclosures come after an adviser to Iran's supreme leader stated that a peace deal hinged on the release of $24 billion in Iranian assets frozen by the United States. In response, Iran's deputy foreign minister asserted that the assets were neither war spoils for Washington nor a payment fund for its allies.