Iran’s Deputy Foreign Minister Kazem Gharibabadi dismissed on Sunday any notion that regional governments could seek compensation through Iranian assets, responding to reports suggesting the United States might utilize these funds to pay Gulf allies for war-related damages.
In a post on X, Gharibabadi declared that Iran’s assets were “neither war spoils for Washington nor a payment fund for its allies.”
According to a Saturday Reuters report citing a knowledgeable source, the United States plans to make Iranian assets accessible to Gulf partners for reconstruction efforts and repairs following future Iranian-caused damage.
The source indicated that America would also explore using these funds for previous damage repairs, noting that U.S. Treasury Secretary Scott Bessent had tasked a team with evaluating costs of harm already caused to Gulf allies by Iran.
Throughout the conflict, Iran conducted missile and drone strikes against multiple Gulf nations, claiming it targeted American and Israeli interests across the region.
Saturday saw Iran announce ballistic missile launches at American bases in Kuwait and Bahrain. U.S. forces reported intercepting six missiles while a seventh failed to reach its intended target. Kuwait confirmed property damage without casualties, and Bahrain advised citizens to take shelter.
Research firm Rystad Energy estimated in April that Middle East conflict reconstruction could cost up to $58 billion for energy infrastructure repairs alone.
Gharibabadi warned that any seizure, transfer, or allocation of Iranian funds without Tehran’s approval would represent “a new internationally wrongful act,” creating U.S. liability while Washington claims to pursue negotiations with Iran. He indicated such actions would trigger an “appropriate response” from Iran, though he provided no specifics.
Iran has requested partial release of its confiscated funds through a framework both nations are discussing to conclude the Iran war.
The Deputy Foreign Minister stated that certain regional governments had made their territories and facilities available “at the service of aggression against Iran” and therefore lacked standing to seek reparations. He argued these governments should fully compensate Iran for damages inflicted upon it.
Tehran’s war-ending conditions include releasing billions in frozen assets, removing U.S. and international sanctions, and acknowledging its control over the Strait of Hormuz.
