US Considers Redirecting Frozen Iranian Assets for Reconstruction Amid Ongoing Conflict

Iranian assets frozen by the United States have become a key point of contention amid the three-month West Asia war. Ceasefire negotiations remain stalled — with Tehran seeking access to billions of dollars in oil revenue, waivers on sanctions on crude exports, the lifting of a US blockade on its ‌ports and leverage over the Strait of Hormuz. But as Iran launches fresh strikes against Gulf countries, US officials are reportedly mulling a diversion of Iranian assets for reconstruction. According to a source-based Reuters report, the US government will attempt to redirect Iranian assets to Gulf states for rebuilding and repairs of damage caused by Iran.Treasury Secretary Scott Bessent has reportedly directed a team to assess costs for damages already inflicted on these allied nations. The source also told Reuters that America would also consider using Iranian assets for repairs of any future destruction. It remains unclear what kind of assets the Treasury is examining or how far these plans have been formalised. The language used to describe the new measures reportedly did not appear limited to frozen assets. A senior Iranian official has claimed Tehran’s ‘first’ military victory in the Islamic Republic’s 47-year-old history, while demanding the release of $24 billion worth of Iranian assets. Military adviser to Supreme Leader Ayatollah Mojtaba Khamenei, Mohsen Rezaei — a military adviser to Supreme Leader Ayatollah Mojtaba Khamenei — has said that the US would “enter into a dark corridor” if fighting resumes. The strategic assessment comes as the official asserts that the current battlefield situation has fundamentally altered Tehran’s position in peace negotiations with the United States, presenting US President Donald Trump with a ‘test of trust’. “This is the first time Iran has emerged victorious in wars, while in previous wars Iran has always been defeated,” Rezaei told CNN. US forces struck Iranian coastal radar sites on Saturday after shooting down drones launched by Iran toward the Strait of Hormuz. The Iranian foreign ministry said that the American actions had broken an April 8 ceasefire and that such repeated violations showed Washington had no intention of reducing tensions. It warned that the United States would bear responsibility for the consequences of its “illegal actions.” Iran’s Revolutionary Guard said it had attacked ⁠US bases in ​Kuwait and Bahrain in retaliation for US strikes and fired at four tankers trying to cross the strait without its permission. Kuwait’s army said on Saturday it engaged seven ballistic missiles that passed over residential areas, resulting in material damage but no casualties. In Bahrain, sirens sounded, and residents were urged to seek shelter. Kuwait and Bahrain condemned the strikes.