The Trump administration is advancing a plan to redirect frozen Iranian assets toward aiding Gulf allies in repairing infrastructure damaged by Tehran’s military actions. According to a senior administration official, the Treasury Department is exploring legal mechanisms to allow Iranian funds to support rebuilding efforts in Saudi Arabia, the United Arab Emirates, Kuwait, and Bahrain.
Gulf Allies Bear Brunt of Tehran’s Strikes
Since the US and Israel began military strikes against Iran on February 28, Tehran and its proxies have launched missile and drone attacks targeting oil infrastructure, industrial sites, and US military facilities across the region. These strikes have inflicted substantial damage on Gulf nations, prompting calls for financial support to restore critical assets.
'The Treasury Department will use all tools available to allow Iranian assets to be used by Gulf allies to support rebuilding,' the official stated.
Reimbursement for Past Damages Considered
In addition to addressing recent destruction, the administration is also investigating whether Iranian funds could be used to reimburse Gulf allies for damages caused by Tehran-backed attacks in previous years. This includes repairing oil infrastructure targeted by Iran and its proxies, potentially offsetting billions in costs borne by US allies.
President Trump has repeatedly criticized former President Obama for transferring funds to Iran and has emphasized maintaining leverage by refusing to release the frozen assets. 'No money will be exchanged,' Trump insisted, aligning with his broader strategy of economic pressure on Tehran.
The initiative risks complicating ongoing negotiations with Iran regarding a truce extension and nuclear program discussions. However, it underscores the administration’s commitment to supporting US allies in the region while holding Tehran accountable for its actions.