The US administration is trying to redirect Iranian assets to Gulf states to rebuild and repair damage caused by Iran following a wave of missile and drone strikes against Kuwait and Bahrain.Reuters reported that US Treasury Secretary Scott Besent ordered a team to assess the cost of damage already inflicted on America’s allies in the Gulf, with Washington also considering using Iranian assets to finance repairs for any future destruction linked to the conflict.This announcement comes a day after Mohsen Rezaei, military advisor to Iranian Supreme Leader Ayatollah Mojtaba Khamenei, said that a potential peace agreement between Tehran and Washington depends on the release of $24 billion in Iranian assets that the United States has frozen.The latest development threatens to further complicate already fragile ceasefire efforts between the two countries, with fighting erupting again over the weekend despite ongoing diplomatic efforts to secure a temporary agreement.US officials are studying Iranian assets that could be redirected toward reconstruction efforts in Gulf states affected by Iranian attacks. The proposal emerged at a time when negotiations between the United States and Iran appeared increasingly deadlocked.
Rezaei told CNN on Friday that Tehran views the release of $24 billion as a key test of confidence and a necessary step toward any broader agreement.Meanwhile, military tensions continued to rise across the region.US forces bombed Iranian coastal radar facilities at Gouruk and Qeshm Island in the Strait of Hormuz early on Saturday after intercepting drones that US Central Command said posed a threat to maritime traffic.
The US military later said it had also shot down two additional Iranian attack aircraft near the strategic waterway.The Iranian Revolutionary Guard responded by launching missiles towards US military facilities in Kuwait and Bahrain. The Kuwaiti authorities said that seven ballistic missiles passed over residential areas and caused material damage without causing any casualties. In Bahrain, sirens sounded in parts of the country, as residents were urged to seek shelter.While Iranian state media claimed that the missiles struck US bases in both countries, the US military said that six missiles were intercepted and the seventh failed to reach its intended target.The United States and Iran have engaged in indirect negotiations aimed at securing an interim arrangement that would halt hostilities while leaving the most contentious issues, including Tehran’s nuclear program, for future talks.However, progress has remained elusive as both sides continue military operations alongside diplomatic engagement.Tehran is seeking to access billions of dollars in oil revenues, ease sanctions on crude oil exports, lift restrictions affecting its ports, and increase influence over the Strait of Hormuz, through which nearly a fifth of the world’s oil shipments passed before the conflict disrupted maritime traffic.In a sign of continuing mediation efforts, Pakistani Interior Minister Mohsin Naqvi arrived in Tehran on Saturday carrying what Iranian media described as a “special message” from Pakistan’s army chief and prime minister to Khamenei. Naqvi is expected to hold talks with senior Iranian officials, including Iranian Foreign Minister Abbas Araqchi.The conflict has also put increasing pressure on US President Donald Trump, who faces domestic criticism over rising fuel prices and broader economic turmoil caused by the war.Speaking to NBC News, Trump said that US operations had led to a significant deterioration in Iran’s missile and drone capabilities, but acknowledged that Tehran still maintained a large arsenal.“They have some missiles, they have some drones,” Trump said. “I would say in terms of a percentage, maybe 21% to 22% of their missiles. There are a lot of missiles, but it’s not like it was when we first attacked.”Outside the Gulf, tensions remain high across the wider region.
In Lebanon, two army officers and a soldier were killed in an Israeli raid on a military vehicle in the south of the country. The Israeli army said it was investigating the incident.Iran has linked any broader agreement with Washington to a ceasefire in Lebanon between Israel and the Iranian-backed Hezbollah group. However, Israel has confirmed that its military operations will continue, highlighting the complex web of regional disputes that continue to complicate peace efforts.With negotiations stalled and the war over for three months, the prospects for reaching a permanent agreement remain uncertain.
