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The Trump administration is reportedly looking at using frozen Iranian funds to compensate Gulf allies hit by Iranian drone and missile attacks.
The Trump administration is considering a plan to use frozen Iranian assets to help Gulf allies repair damage caused by Tehran’s attacks, according to a senior administration official cited in the report.
US Treasury Secretary Scott Bessent has reportedly directed his team to assess damage across allied Gulf states and gather full cost estimates for repairs linked to Iranian strikes since the start of the conflict.
The proposal could involve frozen Iranian funds held overseas, reportedly worth as much as $100 billion. The money has also been part of broader discussions over whether any funds should be released to Tehran as part of a possible peace deal.
“Treasury will utilise all tools available to allow Iranian assets to be made available to our Gulf allies,” the official said, according to the report.
The push comes after Iranian attacks targeted America’s Gulf partners, including Kuwait and Bahrain. US forces also reportedly intercepted Iranian drones and struck Iranian radar sites after threats to regional maritime traffic in the Strait of Hormuz.
The extended conflict has strained US relations with key Gulf partners, especially as the Strait of Hormuz remains heavily disrupted. The waterway is critical for oil and gas shipments, and Iran’s actions continue to threaten regional stability and global energy flows.
The message is clear: Iran’s aggression should not be rewarded. If Tehran damages America’s allies, Iranian assets should be on the table to pay for the repairs.
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