Washington plans to reallocate Iranian assets to rebuild Gulf allies - report
Multiple American media outlets are reporting that the US Treasury Department is planning to weaponize frozen Iranian funds to offset costs of regional damage inflicted by Tehran since February
The United States is planning a major policy shift to redirect frozen Iranian assets to its Gulf allies to fund rebuilding efforts and repairs from military damage caused by Tehran, according to media reports citing sources familiar with the administration's strategic thinking.
The disclosure, reported by ABC News and CNN following simultaneous confirmations by Reuters, CBS News, and Arab News, reveals that Treasury Secretary Scott Bessent directed his department on June 6, 2026, to utilize “all available authorities” to make Iranian assets accessible to regional partners.
The plan is specifically designed to cover the costs of war damage sustained by America's security partners in the Arabian Gulf since Iran's first military strikes on February 28.
The directive effectively converts the $24 billion that Tehran has demanded as its absolute precondition for peace into the primary fund Washington intends to use for paying the repair bills of the states Iran attacked. The US Treasury has reportedly already instructed specialized teams to coordinate with Gulf allies to request comprehensive cost estimates for destruction already sustained during the conflict, while preparing mechanisms to tap these funds for any future damage.
In an interview with CNN on June 5, Mohsen Rezaei, a senior military adviser to Supreme Leader Ayatollah Mojtaba Khamenei, stated explicitly that the frozen assets are completely non-negotiable. Rezaei asserted that the release of the 24 billion dollars is a fundamental "test of trust" and warned that without it, "the negotiations are at a deadlock."