00:00U.S. considers using Iranian frozen assets for Gulf reconstruction amid ongoing ceasefire talks.
00:07Washington, June 6th. The U.S. Treasury Department is considering a plan to use
00:12frozen Iranian assets to support reconstruction and repair efforts in Gulf countries that have
00:17suffered damage from Iranian missile and drone attacks, according to sources familiar with
00:22Treasury Secretary Scott Besant's thinking. The initiative comes as a fragile ceasefire
00:27between Washington and Tehran, brokered by Pakistan in early April, remains under strain following
00:32repeated tit-for-tat military exchanges. The Reconstruction Plan
00:37According to a source who confirmed earlier reporting from Reuters, Besant's team will
00:43assess conditions in Gulf countries and request comprehensive estimates of the cost of repairing
00:48damage inflicted by Iran since the beginning of the conflict. The Treasury Department is seeking
00:53to use all available authority to make Iranian assets available for reconstruction and recovery
00:59projects in Gulf nations, including Saudi Arabia, Bahrain, Qatar, the United Arab Emirates, Kuwait,
01:06and Oman. The idea of tapping Iranian assets, estimated at more than $100 billion held in foreign
01:13countries, comes as Iran and the United States negotiate whether to release some of that money
01:18to Tehran as part of any peace deal. The talks have not yet reached a breakthrough and military
01:23tensions remain high. The State Department will further consider whether Iranian assets could be
01:28used to support repairs for past damage, not only future reconstruction.
01:33The Military and Economic Context
01:36The Reconstruction Plan follows a series of Iranian attacks on America's closest Gulf allies.
01:42Kuwait and Bahrain recently intercepted ballistic missiles launched from Iran,
01:46and Gulf states have faced repeated attacks since the U.S. and Israel first launched strikes on Iran
01:52on February 28th. This week, the Islamic Revolutionary Guard Corps, IRGC, launched ballistic missiles
01:59toward U.S. bases in Kuwait and Bahrain in retaliation for American drone strikes on Iranian territory.
02:05According to IRGC statements carried by Taznim News, the strikes targeted the Ali al-Salam airbase in
02:12Kuwait and remaining facilities of the U.S. Fifth Fleet in Bahrain. Kuwait confirmed its air defenses
02:17intercepted incoming fire. U.S. Central Command reported that its forces shot down multiple Iranian
02:23drones over the Strait of Hormuz and struck Iranian coastal surveillance radar sites on Kesham Island
02:28and near the city of Goruk in response. The region remains on edge as the Trump administration
02:34weighs whether to approve a deal that would extend the 60-day ceasefire, gradually lift the naval blockade,
02:40and reopen the Strait of Hormuz, a vital waterway through which roughly one-fifth of globally traded
02:46oil and natural gas once passed. Besant, we are at the end of their tether financially.
02:54At the Asian Economic Forum, Besant outlined the U.S. economic campaign against Iran,
02:59known as Operation Economic Fury, which he said has pushed the Iranian regime toward financial collapse.
03:06The operation, launched in March 2025, has targeted Iran's financial networks through
03:12asset seizures, bank account freezes, and international cooperation aimed at cutting off
03:17Tehran's access to funds. Between five and a half to six weeks of an incredibly successful military
03:23campaign, and then Operation Economic Fury, where we have really cut them off, they are at the end of
03:30their tether now financially, Besant said in a Fox Business interview. The Treasury Secretary claimed
03:36that large numbers of Iranian security personnel are not receiving salaries, and that inflation has
03:42surged to an estimated 200%. Iranian authorities have reportedly resorted to distributing food vouchers
03:48and restricting internet access, amid mounting economic pressures. He also announced that the United
03:54States has seized approximately $1 billion in Iranian cryptocurrency assets. We have seized about a
04:01billion dollars of their crypto, just outright grabbed the wallets, Besant said. The Secretary
04:07explained that the U.S. is working with European allies to seize properties linked to Iranian leaders.
04:13We are working with our allies all over Europe to grab villas and houses and properties,
04:18and this is money that's stolen from the Iranian people, he stated.
04:23Besant alleged that before U.S. intervention, Iranian leaders had been diverting between $400 million
04:29and $500 million per month. The Negotiation Landscape
04:34The proposed use of Iranian assets for Gulf reconstruction occurs as negotiators from both
04:41sides attempt to hammer out a broader agreement. According to multiple sources, the emerging deal would
04:47extend the ceasefire for another 60 days, allow unrestricted shipping through the Strait of Hormuz.
04:52And lift the U.S. blockade of Iranian ports, while Washington would also ease some sanctions on
04:58Iranian oil sales. However, Iranian state media has cautioned that the text of any agreement has
05:04not been finalized or confirmed. We're not there yet, but we're very close, and we're going to keep
05:11on working at it, Vice President J.D. Vance told reporters. President Trump met with advisors on Friday,
05:17but has yet to make a final decision on whether to move ahead with the deal.
05:22Iran's frozen assets, a key sticking point. Access to frozen assets has become a central issue in the
05:29negotiations. Iranian officials estimate that more than $100 billion in assets remain inaccessible
05:36due to decades of sanctions, banking restrictions, and legal wrangling. According to media reports,
05:42the distribution of Iran's frozen assets includes South Korea, previously held approximately $6 billion
05:49in oil revenues, transferred to Qatar in 2023 as part of a prisoner swap. Iraq. Iran seeks access
05:56to billions of dollars from natural gas and electricity sales, estimated between $10 to $12 billion.
06:03China. Iranian officials estimate hundreds of billions of dollars are held in Chinese banks.
06:09India. Approximately $7 billion from oil sales. Japan. Between $1.5 and $3 billion minus $3 billion
06:19from oil sales. Europe. Assets scattered across multiple countries, with an estimated $1.6 minus $2
06:26billion tied up in a Luxembourg dispute. Mohsen Rezaei, a military advisor to Iran's supreme leader,
06:33told CNN that any potential peace deal would depend on the Trump administration approving the release of
06:39$24 billion in frozen Iranian assets. This is our own property, not U.S. money, he said, describing the
06:46release as a test of trust between the two sides.
06:50Iran's threats and the scope of conflict. Rezaei also warned that if hostilities resume,
06:56Iran could expand the scope of the conflict to multiple theaters, including the Strait of Hormuz,
07:01the Indian Ocean, the Red Sea, and the Mediterranean Sea, while also targeting U.S. military bases.
07:06However, he claimed the likelihood of a full-scale war remains low.
07:11The IRGC has made clear that any further U.S. aggression would trigger a response beyond limited
07:17strikes, including the complete closure of the Strait of Hormuz to oil and gas shipments.
07:23Looking ahead, as the June 8-9 weekend approaches, the White House and State Department have not responded
07:30to requests for comment on which specific Iranian assets the United States intends to use for Gulf
07:36Reconstruction. President Trump has maintained optimism about the talks, posting on Truth Social
07:41early Monday, Iran really wants to make a deal, and it will be a good one for the USA and
07:47those that
07:47are with us. Just sit back and relax. It will all work out well in the end. It always does.
07:53Whether the administration's dual-track approach, offering reconstruction funds from Iranian assets
08:00while maintaining crippling economic pressure, will succeed in bringing Tehran to a final agreement
08:06remains to be seen. What is clear is that the frozen assets have become both a potent bargaining
08:12chip for Washington and an urgent necessity for an Iranian economy teetering on the brink of collapse.
08:18terms.
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