Trump plans to redirect frozen Iranian assets toward rebuilding Gulf allies as truce talks top $24 billion | Today’s news
The Trump administration is seeking to channel Iranian assets to help America’s allies in the Persian Gulf recover from the damage inflicted by Tehran and repair any future destruction.
The effort, described by a senior administration official who was not authorized to speak publicly, comes amid heated talks between Washington and Tehran over a potential deal to extend a ceasefire in the Iran war. Negotiations appear to have stalled over Tehran’s insistence on the release of some $24 billion in frozen Iranian financial assets.
The Trump administration’s approach would shift some assets to a different path. The Treasury Department will use all available tools to allow Gulf allies to use Iranian assets to support recovery, the official said.
The initiative risks further frosty negotiations on extending the ceasefire, reopening the Strait of Hormuz and paves the way for more detailed talks on Iran’s nuclear program.
The effort was previously reported by Reuters.
The first step is already underway as the U.S. government tries to calculate repair cost estimates.
Treasury Secretary Scott Bessent ordered his team to assess conditions among America’s allies in the region and request comprehensive estimates of the costs associated with repairing the damage Tehran has caused since the conflict began, the official said.
Since the US and Israel began attacking Iran on February 28, Tehran and its proxies have launched missile and drone attacks on oil infrastructure, industrial sites and US military installations across the region. Saudi Arabia, the United Arab Emirates, Kuwait and Bahrain suffered damage.
The Treasury Department will also consider whether Iranian assets could be used to support repairs of past damage, the official said. This opens up the possibility of reimbursing the costs associated with rebuilding the oil infrastructure, which Tehran and Iran-backed groups targeted years ago.
US President Donald Trump has reflected that Tehran’s strikes on its Gulf neighbors have further antagonized US allies in the region against Iran.
Trump has also frequently criticized former President Barack Obama for transferring funds to Iran and signaled an unwillingness to give up leverage by divesting assets, insisting instead that no money would be exchanged.
