US Weighs Using Iranian Assets to Aid Gulf Allies After War Damage

Washington is quietly assessing a plan that would tap frozen Iranian sovereign wealth to reimburse Gulf states for infrastructure shattered by the ongoing conflict.

US using Iranian assets as compensation tool

The proposal, first reported by Reuters, surfaces amid a widening rift between the Trump administration and regional partners over battlefield strategy.

Officials say the move could channel up to ↑ $3 billion into reconstruction, but critics warn it may violate international sanctions and fuel anti‑U.S. sentiment.

Saudi Arabia and the United Arab Emirates have pressed Washington for swift relief, arguing that delays erode trust built during the pandemic era when emergency aid channels were first tested.

“Redirecting Iranian funds is a legal gray zone that could backfire diplomatically,” a senior State Department source told Bloomberg.

Lawmakers on both sides of the aisle are already drafting oversight clauses, fearing that the scheme could set a precedent for future asset seizures.

Intel provided by Eleanor Cross (Chief Washington Correspondent).