Kehinde Adegoke | International Agencies
The United States is considering plans to redirect frozen Iranian assets to finance reconstruction efforts in Gulf states hit by Tehran’s recent missile and drone strikes, according to a source familiar with the discussions.
The proposal, still under review, would channel Iranian funds held abroad into rebuilding projects in Kuwait and Bahrain, where critical infrastructure has been damaged. Officials say the move is designed to ease humanitarian pressures while reinforcing Washington’s commitment to regional partners.
Legal and diplomatic hurdles remain significant. Iranian assets are currently frozen under international sanctions, and repurposing them for Gulf reconstruction could trigger sharp backlash from Tehran, which has long denounced Western sanctions as “economic warfare.”
Regional analysts warn that such a step could escalate tensions further, but Gulf governments are pressing Washington for tangible support. “It’s about showing that the US is not just providing military backing, but also helping rebuild,” the source said.
The deliberations highlight Washington’s broader strategy: countering Iran’s regional influence while shoring up allies battered by conflict. No final decision has been made, but the discussions underscore the urgency of stabilising the Gulf amid intensifying hostilities.
