Treasury Department eyeing Iranian assets to help Gulf allies recover: reports

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FOX Local
Published June 7, 2026 8:41 AM PDT

FILE - Smoke rises after Iran launched a missile attack targeting the headquarters of the U.S. Navy’s Fifth Fleet in Manama, following what it described as retaliation against U.S. and Israeli strikes, in Manama, Bahrain on February 28, 2026. (Photo …

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The Brief

    • The U.S. Treasury Department is considering allowing Gulf allies to tap into frozen Iranian assets to pay for damages they sustained in the war.
    • Sources have told multiple outlets that Secretary Bessent has instructed teams to gather cost estimates.
    • It’s unclear which assets would be used, but $24 billion in Iranian funds stored abroad are currently frozen.

The U.S. is looking to use Iranian assets to help allies in the Gulf region rebuild and repair damages caused by Iran during the war, according to multiple reports. 

Iranian assets for recovery

What we know:

The Treasury Department is considering allowing Gulf allies to tap into frozen Iranian assets to pay for damages they sustained in the war, a source familiar with the plan told The Associated Press. 

Reuters and CBS News reported Treasury Secretary Scott Bessent told a team to gather cost estimates for damage caused by Iran, according to a source. 

What we don't know:

It wasn’t clear which assets the U.S. was eyeing specifically to use, and the alleged proposal has the potential to extend beyond frozen assets. 

Meanwhile:

Billions of dollars in frozen Iranian funds have been included in ongoing negotiations to end the war.

RELATED: 12% of Americans say Iran war has been 'more positive than negative'

Dig deeper:

On Saturday, Mohsen Rezaei, an adviser to Iran's supreme leader, told CNN that a peace deal to end the three-month-old war hinged on the release of $24 ​billion in Iranian assets frozen by the United States.

Who are US Gulf allies? 

Big picture view:

Gulf allies of the United States include: 

  • Saudi Arabia
  • United Arab Emirates
  • Kuwait
  • Bahrain
  • Qatar
  • Oman

Iran war peace deal

Big picture view:

Meanwhile, U.S. and Iranian negotiators reached a tentative agreement a week ago to extend the ceasefire by 60 days and start a new round of talks on Iran’s nuclear program. 

President Donald Trump, however, has called for unspecified changes, and Iranian officials have shown no public sign of agreeing to the deal.

The Source: FILE - Smoke rises after Iran launched a missile attack targeting the headquarters of the U.S. Navy’s Fifth Fleet in Manama, following what it described as retaliation against U.S. and Israeli strikes, in Manama, Bahrain on February 28, 2026. (Photo by Stringer/Anadolu via Getty Images)

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