Trump Plan: Make Iran Pay For Gulf War Damage Frozen Iranian Assets Could Fund ReconstructionThe Trump administration is considering using frozen Iranian assets to help pay for rebuilding projects across Gulf states damaged by Tehran's missile and drone attacks. According to a source familiar with Treasury Secretary Scott Bessent's thinking, the United States is preparing plans that would allow Iranian funds held abroad to be redirected towards reconstruction efforts in countries targeted during the conflict. The proposal could eventually involve billions of dollars in Iranian assets that have remained frozen under international sanctions. Gulf States Hit By Iranian StrikesThe move comes after Iran launched multiple missile and drone attacks against countries across the Gulf region. Kuwait and Bahrain have recently intercepted ballistic missiles, while other Gulf states have suffered damage to infrastructure since the conflict escalated following US and Israeli strikes earlier this year. Officials are now assessing the scale of the destruction. Treasury To Calculate Cost Of DamageUnder the proposal, Treasury officials would work with Gulf governments to estimate the cost of repairing damage caused by Iranian attacks. The department is also reportedly considering whether frozen Iranian funds could be used to compensate countries for damage already inflicted during previous attacks. The review would examine both recent strikes and earlier incidents linked to Tehran's regional campaign. Tehran Faces New Financial PressureThe proposal represents a significant escalation in economic pressure on Iran. For years, Tehran has demanded access to tens of billions of dollars in frozen assets held abroad. Iranian negotiators have repeatedly pushed for the release of those funds during talks with Washington. Instead, the Trump administration is now exploring whether some of that money could ultimately be used to compensate countries that have come under Iranian attack. New Front Opens In Iran DisputeThe plan could further complicate already fragile negotiations between Washington and Tehran. Iran views the release of frozen assets as one of its key demands in any future agreement, while US officials increasingly view those same funds as a potential source of compensation for allies harmed by Iranian military actions. If implemented, the policy would mark one of the most aggressive attempts yet to make Tehran financially responsible for the regional consequences of its military campaign. Inspired by CNN
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