Washington explores using frozen Iran funds to aid Gulf allies

Shafaq News- Washington/ Tehran

Frozen Iranian assets could be used to help repair damage in countries affected by Iranian attacks, Reuters reported on Saturday, while the same funds remain one of the main disputes in US-Iran negotiations.

US Treasury Secretary Scott Bessent directed relevant agencies to assess damage allegedly caused by Iran in several neighboring states, a step that, according to the outlet, could shape future compensation or reconstruction mechanisms.

Tehran, meanwhile, has demanded immediate access to frozen money as part of any preliminary deal. Iranian Deputy Foreign Minister Kazem Gharibabadi told Mehr News Agency that at least 50% of Iran’s frozen assets should be released immediately under any possible understanding with the United States.

Mohsen Rezaei, an adviser to Iran’s Supreme Leader, also told CNN that any agreement with Washington depends on the release of $24 billion in Iranian funds frozen under US sanctions.

Tehran has linked broader de-escalation to a halt in Israeli attacks on Lebanon, while Washington has sought changes to a draft agreement related to the Strait of Hormuz and the fate of Iran’s highly enriched uranium, delaying a final deal.