U.S. Weighs Using Frozen Iranian Assets to Repair Gulf Allies
The Trump administration is considering using frozen Iranian assets to fund reconstruction in Gulf states damaged by Tehran's attacks, while Iran demands release of those same billions as a precondition for talks.
The plan comes as Iranian officials simultaneously demand the release of billions of dollars in those same frozen funds as a precondition for any comprehensive agreement with Washington.
Treasury Secretary Scott Bessent has instructed personnel to evaluate the extent of damage suffered by U.S.-aligned Gulf nations since hostilities began and to determine whether Iranian assets under American control could be repurposed to finance reconstruction and repair operations, as Breitbart News reports.
The review could potentially cover both future damage inflicted by Iran and restoration work related to previous attacks, officials familiar with the initiative indicated.
A source briefed on the effort told media outlets that Treasury would employ all available mechanisms to make Iranian assets accessible for rebuilding efforts in Gulf countries targeted by Tehran’s aggression.
The source added that Bessent has ordered Treasury officials to solicit detailed damage assessments from Gulf partners covering losses sustained since the conflict erupted, while also exploring whether Iranian funds could help finance repairs from earlier attacks.
Tehran Demands Release of Frozen Funds
The proposal surfaced just one day after Mohsen Rezaei, a senior military adviser to Supreme Leader Ayatollah Mojtaba Khamenei, told CNN that negotiations with Washington had stalled and that President Donald Trump must decide whether to release approximately 24 billion dollars in frozen Iranian assets.
Rezaei characterized the talks as deadlocked and placed the onus on Trump to break the impasse.
Tehran is demanding the immediate release of 12 billion dollars upon signing an interim agreement, with an additional 12 billion dollars to follow at a later stage, according to Rezaei. He framed the demand as a measure of Washington’s commitment to reaching a deal, insisting the funds belong to Iran.
The Iranian adviser also issued a veiled threat, warning that Iran would expand the scope of the conflict if fighting resumes, including additional strikes against American installations across the region.
Administration Prepares Nuclear Technical Team
Despite the ongoing disagreement over asset release, the Trump administration appears to be laying groundwork for a potential implementation phase should negotiations advance.
Breitbart News reports that Special Envoy Steve Witkoff and Jared Kushner recently traveled discreetly to Oak Ridge, Tennessee, to consult with nuclear specialists who could assume critical roles in executing a future accord with Iran.
The administration has reportedly assembled a team of roughly 100 nuclear specialists and technical experts tasked with preparing for detailed negotiations should a preliminary framework be agreed upon.
This group would be responsible for developing plans governing the disposal of Iran’s enriched uranium stockpile, future enrichment limitations, verification protocols, and other highly technical elements of a potential deal.
A U.S. official told media outlets that the Oak Ridge meeting does not guarantee a deal will materialize, but signals that negotiations have entered a serious phase with a reasonable prospect of success, and that preparation is necessary.
According to reports, Witkoff and Kushner had previously reached tentative agreement with Iranian negotiators on a framework that would extend the current ceasefire, reopen the Strait of Hormuz, allow Iranian oil exports, and initiate negotiations over Tehran’s uranium stockpile and future enrichment caps.
Key Sticking Points Remain
Several critical issues remain unresolved, including the timing and scope of sanctions relief, the release of Iranian assets, and the schedule for downblending or removing Iran’s enriched uranium stockpile, according to Breitbart News.
Military Tensions Continue Despite Diplomacy
Military tensions persisted over the weekend even as diplomatic efforts continued and a fragile ceasefire remained under pressure.
U.S. Central Command announced Saturday that American forces intercepted two Iranian one-way attack drones that posed a threat to international maritime traffic in the Strait of Hormuz.
The interceptions occurred hours after CENTCOM reported that U.S. forces had destroyed four additional Iranian attack drones in the area.
With information from Breitbart News
