US Treasury Secretary Scott Bessent is considering a programme that could use Iranian assets to help Gulf allies rebuild damage caused by attacks linked to Tehran, according to a report by The New York Post. A source quoted in the report said that the Treasury Department plans to explore mechanisms that would make Iranian assets available to support reconstruction and repairs in countries affected by Iranian military actions.
“Treasury will utilize all tools available to allow Iranian assets to be made available to our Gulf allies to support rebuilding and repairs for any future damage caused by Iran,” the source said. According to the report, Bessent has instructed officials to assess conditions in Gulf states and compile estimates of the costs associated with repairing damage attributed to Iran since the conflict began.
The source added that the Treasury Department would also consider whether Iranian assets could be used to cover costs related to previous attacks.
No estimate of the programme’s potential value was provided.
Frozen Assets at Centre of US-Iran Talks
The proposal comes as negotiations continue between Washington and Tehran over ending a conflict that began on February 28. Although the source did not specifically mention Iran’s estimated $24bn in frozen assets, those funds have reportedly featured prominently in ongoing discussions between the two countries.
Iran’s oil revenues have been significantly affected by a US blockade imposed by President Donald Trump after disruptions to shipping through the Strait of Hormuz.
The reported Treasury initiative was disclosed after US Central Command announced that Iran had launched seven ballistic missiles towards Kuwait and Bahrain at dawn on Saturday. The announcement followed attacks last week that reportedly damaged Kuwait International Airport, killing one person and injuring more than 60 others.
Mohsen Rezaei, a security adviser to Iran’s Supreme Leader, Mojtaba Khamenei, told CNN on Friday that negotiations with the United States had reached a “deadlock”. According to Rezaei, progress depends on Washington releasing Iran’s frozen assets.
Iran has reportedly proposed that $12bn be released immediately after an interim agreement is signed, with the remaining $12bn becoming available at a later stage.
US officials have expressed concern that releasing the funds now could weaken a significant source of leverage over Tehran.
President Trump has repeatedly said any agreement with Iran must be stronger than the 2015 nuclear deal and has criticised previous efforts that involved transferring funds to Tehran.
‘A Test of Trust’
Rezaei described the release of the assets as a confidence-building measure. “If he (Trump) wants to reach an agreement with Iran, this $24 billion is a test of trust that Iran wants to have with Trump – this is a test that America must pass and the path will be opened,” he told CNN. “This is our own money, not America’s money.”
Rezaei also warned that Iran could expand military operations if fighting resumes. “We will give another dimension to the war by attacking these other American bases that we have been attacking so far,” he said.
He suggested any escalation could extend beyond the Persian Gulf to include the Indian Ocean, the Bab al-Mandab Strait, the Red Sea and the Mediterranean Sea.
Despite the warning, Rezaei added that “the possibility of war is low”.