BREAKING: US To Make Iranian Assets Available For Repairs In Gulf States That Were Damaged In Iranian Attacks

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According to the Jerusalem Post, the United States plans to make certain frozen Iranian assets available to help finance repairs and reconstruction in Gulf states that suffered damage during recent Iranian attacks, according to a senior U.S. administration official familiar with the initiative.

The move comes after U.S. Treasury Secretary Scott Bessent directed a team to assess conditions among Washington’s Gulf allies and evaluate the financial costs associated with damage caused by Iranian missile and drone strikes, the official said.

The review focused on infrastructure, energy facilities, transportation networks, and industrial sites that were affected during the regional escalation involving Iran and several Gulf nations.

Speaking to reporters, the official said the administration was exploring ways to ensure that countries impacted by the attacks receive support for recovery efforts.

“Secretary Bessent directed a team to assess conditions among Gulf allies, assessing costs for damage inflicted by Iran,” the official said.

The proposal would allow a portion of Iranian assets currently under U.S. jurisdiction to be used for reconstruction and repair projects, though details regarding the legal framework and implementation remain under discussion.

The initiative is expected to be coordinated closely with Gulf governments, including those that reported damage to critical facilities following Iranian attacks earlier this year. U.S. officials said any funds made available would be subject to oversight mechanisms intended to ensure they are used exclusively for reconstruction purposes.

The announcement follows months of heightened tensions across the Gulf region, where missile and drone attacks have threatened shipping routes, energy infrastructure and regional security. Several Gulf states reported damage to industrial facilities and oil-related infrastructure during the hostilities.

An illustrative image released earlier this year showed fire and smoke rising from the Fujairah Oil Industry Zone in the United Arab Emirates after debris from an intercepted drone fell in the area. While authorities reported damage, they said emergency services quickly brought the situation under control.

The administration’s review is part of a broader effort to reassure regional partners and strengthen cooperation following the recent conflict. Officials said Washington remains committed to supporting the security and economic stability of its Gulf allies.

No final decision has yet been announced regarding the amount of Iranian assets that could be allocated or the timeline for distributing funds. Administration officials indicated that consultations with affected governments and legal experts are continuing.

The proposal is likely to draw scrutiny from lawmakers and international observers, particularly regarding the use of frozen foreign assets. However, supporters argue that countries harmed by Iranian military actions should have access to resources that can help cover the costs of recovery and rebuilding.

Further details are expected once the Treasury Department completes its assessment and presents recommendations to the White House.