Washington: The United States is reportedly exploring the possibility of using frozen Iranian assets to help Gulf nations recover from damage caused during the ongoing regional conflict involving Tehran, according to a report by CBS News.
The proposal is being considered by the US Treasury Department under Treasury Secretary Scott Bessent, who has reportedly directed officials to examine legal and financial mechanisms that could allow Iranian assets held abroad to be used for reconstruction efforts in affected Gulf countries.
According to sources familiar with the discussions, the Treasury Department is seeking detailed estimates from partner nations regarding the cost of repairing infrastructure damaged during the conflict. Officials are also evaluating whether existing US authorities could be used to redirect frozen Iranian assets toward rebuilding projects.
The report suggests that both financial holdings and other Iranian-owned assets abroad could be examined as potential sources of funding, although no final decisions have been announced regarding the specific assets that may be targeted.
The development comes amid broader tensions between Washington and Tehran, as indirect diplomatic efforts continue alongside military confrontations and disputes over sanctions. Iran has consistently argued that the release of its frozen overseas assets is a key condition for any future agreement with the United States.
The proposal follows months of regional instability, during which several Gulf countries have faced security threats linked to the conflict. US officials reportedly view the initiative as a way to support regional partners while increasing financial pressure on Tehran.
At the same time, diplomatic efforts remain complicated by ongoing military exchanges and disagreements over sanctions, regional security arrangements and the future of shipping routes through the Strait of Hormuz.
Recent hostilities have further heightened tensions in the region. Military incidents involving US and Iranian forces, along with developments in Lebanon and other neighbouring areas, have added new challenges to efforts aimed at achieving a lasting ceasefire and broader regional stability.
Analysts note that any attempt to repurpose frozen Iranian assets could face significant legal, diplomatic and international challenges, particularly as negotiations between the two countries remain stalled.
