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U.S. State Department

US Moves to Redirect Iranian Assets for Gulf Damage Repairs

The United States will seek to redirect Iranian assets toward Gulf states to fund rebuilding and repairs for damage caused by Iran, a source familiar with the matter said on Saturday, June 6 — one day after a wave of Iranian attacks struck Kuwait and Bahrain.

US Treasury Secretary Scott Bessent has directed a team to assess the costs of damage already inflicted on Gulf allies by Iran, and Washington will consider using Iranian assets for those repairs as well. The disclosure followed a claim by an adviser to Iran’s supreme leader that any peace deal hinged on the release of $24 billion in Iranian assets frozen by the United States. The language describing the new measures did not appear limited to frozen holdings.

Peace negotiations appear to have stalled, though a minister from mediator Pakistan traveled to Tehran on Saturday, June 6, carrying a letter for Iran’s leadership. The move to tap Iranian assets could add a new strain to a fragile US-Iran ceasefire, which was tested again over the weekend. American forces had struck Iranian coastal radar sites at Goruk and on Qeshm Island in the Strait of Hormuz after downing Iranian drones, and Iran’s Revolutionary Guard said it retaliated against US bases in Kuwait and Bahrain.

(JPost/VFI News)