Trump Administration Seeks to Redirect Frozen Iranian Assets to Gulf Allies for War Damage Instead of Releasing Them in Stalled Truce Talks

The Trump administration is directing Treasury officials to calculate repair costs in Saudi Arabia, the United Arab Emirates, Kuwait and Bahrain after Iranian strikes since Feb. 28. The move comes as talks with Tehran stall over the release of $24 billion in frozen assets.

U.S. allies in the region and request comprehensive estimates of the costs associated with repairing damage inflicted by Tehran since the start of the conflict, a senior administration official said. The Treasury Department will use all tools available to allow Iranian assets to be used by Gulf allies to support rebuilding, the official said.

The department will also consider whether Iranian assets could be used to support repairs for past damages. U.S. and Israel began striking Iran on Feb. 28. U.S. Military facilities throughout the region. Saudi Arabia, the United Arab Emirates, Kuwait and Bahrain have all sustained damage.

Negotiations between Washington and Tehran on extending a truce have bogged down over Tehran’s insistence on the release of some $24 billion in frozen Iranian financial assets.

The administration’s approach would put some of the assets on a different path. President Donald Trump has indicated an unwillingness to cede leverage by relinquishing the assets and has insisted that no money will be exchanged. U.S. Allies in the region against Iran. U.S. government looks to calculate cost estimates for the repairs.