Iran Condemns US Plan to Use Frozen Assets for Allies

The United States Department of the Treasury is exploring the use of frozen Iranian assets and seized ships to compensate Gulf allies for infrastructure damage. Treasury Secretary Scott Bessent directed a team to assess the costs of repairs following Iranian attacks on over 80 oil, gas, and vital facilities in March and April, which caused estimated damages of up to $58 billion. This effort follows recent Iranian ballistic missile strikes on U.S. bases in Kuwait and Bahrain.

Kazem Gharibabadi, Iran's Deputy Foreign Minister for Legal and International Affairs, condemned the proposal, calling any unauthorized seizure of assets an internationally wrongful act that would provoke an appropriate response from Tehran. He argued that regional governments are not in a position to demand reparations and suggested that the U.S. should instead compensate Iran for damages stemming from Operation Epic Fury, a 40-day joint US-Israeli military campaign that began in February 2026.

Iranian Foreign Ministry spokesman Esmaeil Baghaei simultaneously demanded the unconditional release of billions in frozen assets and the lifting of U.S. sanctions. While Iran seeks recognition of its influence over the Strait of Hormuz and the return of its funds as a requirement for ending the conflict, the Trump administration has rejected these demands for reparations.