Daijiworld Media Network - Washington
Washington, Jun 7: The United States is considering redirecting Iranian assets to help rebuild and repair damage caused by recent Iranian attacks on Gulf nations, according to a source familiar with the matter, as fresh military exchanges between Washington and Tehran threaten a fragile ceasefire.
The source said US Treasury Secretary Scott Bessent has instructed officials to assess the cost of damage inflicted on Gulf allies, including Kuwait and Bahrain, following recent Iranian strikes. The assessment could form the basis for using Iranian assets to fund reconstruction and future repairs.
The development comes a day after Mohsen Rezaei, an adviser to Iran's supreme leader, stated that any peace agreement to end the three-month conflict would require the release of $24 billion in Iranian assets frozen by the United States.
The source did not specify which Iranian assets were being examined, and it remained unclear whether the proposed measures would be limited to frozen funds or include other categories of assets.
The proposal risks adding further strain to already fragile negotiations between Washington and Tehran. Peace talks have slowed in recent weeks despite efforts by Pakistan to mediate between the two sides.
On Saturday, Iranian state media reported that Pakistani Interior Minister Mohsin Naqvi arrived in Tehran carrying a special letter from Pakistan's military leadership and prime minister for Iran's Supreme Leader Ayatollah Mojtaba Khamenei.
Meanwhile, military tensions continued in the Gulf region. US forces carried out strikes on Iranian coastal radar installations in Goruk and on Qeshm Island in the Strait of Hormuz after intercepting drones that Washington said posed a threat to maritime traffic. The US military also reported shooting down additional Iranian attack drones near the strategic waterway.
Iran's Revolutionary Guard claimed responsibility for retaliatory missile attacks targeting US military facilities in Kuwait and Bahrain. Kuwaiti authorities said seven ballistic missiles passed over residential areas, causing property damage but no casualties. Bahrain activated emergency sirens and advised residents to seek shelter.
While Iran maintained that its missiles had struck US bases, American officials said most of the projectiles were intercepted and one failed to reach its intended target.
Negotiations between the two countries have largely focused on securing an interim arrangement to halt hostilities while leaving contentious issues, including Iran's nuclear programme, for future discussions.
Iran has been seeking access to billions of dollars in oil revenue, sanctions relief, the removal of restrictions affecting its ports and greater leverage over the Strait of Hormuz, a critical global energy route through which nearly one-fifth of the world's oil trade passed before the conflict erupted.
US President Donald Trump, facing growing domestic pressure over rising fuel prices and economic disruptions linked to the conflict, said Iran's military capabilities had been significantly reduced.
In remarks to NBC's "Meet the Press", Trump said Iran retained only a fraction of its original missile arsenal, although it still possessed a substantial number of missiles and drones.
The conflict has pushed up global oil prices and disrupted supply chains, including the movement of humanitarian aid.
The regional crisis has also spilled into Lebanon, where the Lebanese army reported that two officers and a soldier were killed in an Israeli strike on a military vehicle in the country's south. Israel said it was investigating the incident.
Iran has reportedly linked any broader agreement with Washington to a ceasefire in Lebanon involving Israel and Hezbollah. However, efforts to secure a separate arrangement in Lebanon have faced obstacles, with Hezbollah rejecting a US-backed proposal and Israel indicating that its military operations would continue.
As diplomatic efforts struggle to gain momentum, renewed military exchanges across the Gulf and the wider Middle East continue to raise concerns over regional stability and global energy security.