US plans to use frozen Iranian assets to compensate Gulf allies

The United States (US) Treasury Department is considering the use of frozen Iranian assets to help Gulf allies recover from damage linked to attacks by Iran during the ongoing conflict, according to a source familiar with Treasury Secretary Scott Bessent’s position.

The source told CBS News on Saturday that the Treasury intends to explore all available legal authorities to make Iranian assets accessible for rebuilding and repair efforts related to any future damage caused by Tehran.

According to the source, Bessent has directed the Treasury Department to obtain detailed estimates from Gulf allies on the costs of repairing damage attributed to Iran since the conflict began.

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The department is also assessing whether Iranian assets could be used to fund repairs for damage already sustained by Gulf countries during the war.

The source, however, said it remains unclear which specific Iranian assets could be utilised. These could include frozen cash held in foreign bank accounts or physical assets such as oil tankers.

The development comes as indirect peace talks between the United States and Iran continue.

Iran has maintained that any agreement would require the removal of sanctions and the release of billions of dollars in Iranian assets frozen abroad.

Since the conflict erupted in late February, Iran has carried out intermittent missile and drone attacks targeting Gulf states, including Saudi Arabia, the United Arab Emirates, Kuwait, Bahrain, Qatar, and Oman.

The reported Treasury proposal signals a possible shift in how the United States may seek to address the financial impact of the conflict on its regional partners while discussions with Tehran continue.