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US treasury department may use Iranian assets to pay for damages to Gulf allies: Report
Several Gulf countries which host US military bases have come under fire from Iran during the course of the war and have sustained heavy losses.
Unfreezing of Iranian assets by the United States has been one of the constant demands of Tehran while negotiating a peace deal to end the ongoing war. However, the US' treasury department seems to have different plans for those assets.
US treasury secretary Scott Bessent is considering using Iranian assets to help America's allies in the Gulf to recover from the losses incurred due to attacks by Iran during the war, CBS reported Saturday citing a source familiar with what Bessent is thinking.
The source also said that the US treasury is exploring avenues to ensure that Iranian assets can be accessed for recovery and reconstruction in case Tehran causes further damage.
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Taking a step further in this direction, Bessent has also asked the department to take a comprehensive measure of the repair costs by the US' Gulf allies since the war began on February 28, the source said.
The treasury will also explore if the Iranian assets could be used to make up for damages already sustained by Gulf allies when the war began, the source said
However, it is not yet certain which of the frozen Iranian assets would be used for financing damage repairs in the Gulf — Iran's frozen financial reserves in banks, its vessels or other properties.
Several Gulf countries which host US military bases such as Saudi Arabia, the United Arab Emirates, Kuwait, Bahrain, and others have come under fire from Iran during the course of the war and have sustained heavy losses.
No de-escalation in sight
Meanwhile, both the sides — the United States, backed by Israel, and Iran — continue to trade attacks as there has been no major breakthrough in peace talks so far. On Sunday morning, the US Central Command said in a post that they shot down two Iranian one-way attack drones that “threatened international maritime traffic” in the Strait of Hormuz on Saturday.
“American forces remain postured and ready to continue defending against Iranian aggression,” the post read.
Following this, Iran launched several missiles at Bahrain and Kuwait, both US allies, on Saturday.
According to Centcom, Iran launched seven ballistic missiles towards Bahrain and Kuwait but six of them were intercepted while Iran's Revolutionary Guards said they had targeted "enemy bases in the area" with missiles, reported news agency AFP.
An AFP journalist in Bahrain's Manama reported hearing three explosions amid air raid sirens. In Kuwait, another journalist said they heard multiple blasts near the airport.
