The United States plans to redirect Iranian assets to assist Gulf nations in reconstruction efforts following damage from Iranian attacks, according to a source with knowledge of the situation revealed Saturday. This development follows Friday’s Iranian strikes against Kuwait and Bahrain.
Treasury Secretary Scott Bessent has instructed a team to evaluate costs for damage Gulf allies have already sustained from Iranian actions, the source indicated, noting that the US may utilize Iranian assets for those repairs as well.
This announcement came one day after Mohsen Rezaei, an adviser to Iran’s supreme leader, stated to CNN that any peace agreement would depend on releasing $24 billion in Iranian assets currently frozen by the United States.
The source did not detail which specific assets the Treasury Department was reviewing Saturday. The terminology describing these new measures appeared to extend beyond just frozen assets.
Peace talks seem to have reached an impasse, though a minister from mediating nation Pakistan flew to Tehran Saturday carrying correspondence for Iran’s Supreme Leader Mojtaba Khamenei, according to Iran’s semi-official ISNA news agency.
This potential redirection of Iranian assets may introduce fresh tensions to an already fragile ceasefire between the United States and Iran, which faced new challenges this weekend through military actions by both nations.
American forces targeted Iranian coastal radar installations at Goruk and Qeshm Island, both located in the Strait of Hormuz, early Saturday following the downing of Iranian-launched drones that US Central Command described as threatening maritime traffic.
Iran’s Revolutionary Guard reported retaliating against US installations in Kuwait and Bahrain, while Kuwait’s army announced Saturday it intercepted seven ballistic missiles that flew over civilian neighborhoods, causing property damage but no injuries.
Bahrain experienced warning sirens as residents received shelter advisories. Both Kuwait and Bahrain denounced the attacks.
Iran subsequently claimed successful ballistic missile strikes on US bases in both nations, though the US military stated six missiles were intercepted while a seventh failed to reach its intended target.
The US and Iran have maintained primarily indirect negotiations seeking an interim agreement to end the three-month conflict, leaving matters such as Iran’s nuclear program for future discussions.
However, reaching an agreement has proven challenging while both sides continue periodic confrontations.
Tehran seeks access to billions in oil revenues, sanctions relief on crude exports, removal of US port blockades, and control over the Strait of Hormuz. Iran has effectively closed this waterway, which previously handled approximately one-fifth of global oil transit before hostilities began.
Iranian state media confirmed Pakistani Interior Minister Mohsin Naqvi’s Saturday arrival in Tehran for discussions with Iranian officials, including Foreign Minister Abbas Araqchi. Naqvi indicated he was delivering a “special letter” from his nation’s army chief and prime minister to Iran’s Khamenei, ISNA reported.
Trump faces increasing domestic political pressure over rising fuel costs to conclude the unpopular conflict. He informed NBC that while most Iranian drone and missile production facilities had been eliminated, Iranians retained access to roughly one-fifth of their missiles.
“They have some missiles, they have some drones. I would say percentage wise, maybe 21% to 22% of their missiles. It’s a lot of missiles, but it’s not what it was when we first attacked,” Trump stated to NBC News’ “Meet the Press” program, according to network excerpts released Friday.
Following the February 28 launch of the US-Israeli military campaign against Iran, Tehran struck Gulf states housing US bases and essentially halted Strait of Hormuz shipping.
The conflict has elevated oil prices and disrupted supply chains for various goods, including humanitarian assistance.
In related Lebanese fighting, two Lebanese army officers and one soldier died in an Israeli attack on a military vehicle in southern Lebanon, the Lebanese army reported. Israeli military officials said they were investigating the incident.
Iran has established a Lebanon ceasefire between Israel and Iran-aligned Hezbollah as a prerequisite for any peace agreement with Washington.
Lebanon’s army announced Saturday that its commander, General Rudolf Haykal, departed for Pakistan following an invitation from his Pakistani counterpart, providing no additional details.
The unexpected visit drew attention given Washington’s insistence — along with Lebanese leadership including the president — that Lebanese ceasefire discussions remain distinct from US-Iran negotiations mediated by Pakistan.
Hezbollah leader Naim Qassem rejected this week a US-mediated agreement between Israel and the Lebanese government to cease Lebanese fighting. The arrangement did not include Israeli withdrawal provisions and Hezbollah had not participated in negotiations.
Israel has declared its forces would not withdraw or suspend operations in the country amid growing tensions with the US.
