US Eyes Iranian Assets for Gulf Reconstruction

The US government is considering diverting frozen Iranian assets to Gulf states to cover damage caused by Iran, according to a source familiar with the matter.

Treasury Secretary Scott Bessent has directed his team to assess the cost of damage Iran has inflicted on Gulf allies. The source added that the US is also considering using Iranian assets to cover any future damage.

The disclosure came a day after Mohsen Rezaei, an adviser to Iran's supreme leader, told CNN that a peace deal to end the three-month war hinges on the release of $24bn in Iranian assets frozen by the United States.

The prospect of diverting those assets could create a new obstacle to the fragile truce between the two countries, which came under fresh strain this weekend following renewed US and Iranian attacks.

(reuters, su)