Bessent Pulls Trigger On Using Frozen Funds To Reimburse Gulf Allies: ‘Iran Will Pay’

US Treasury Secretary Bessent announced on X Thursday morning that Washington is moving forward on a plan to compensate America’s Gulf regional allies for damage sustained during Iranian counterattacks on their energy and civic infrastructure.

He made clear that any damage to Gulf allies would be paid for with frozen Iranian funds, which Tehran leadership has long blasted as blatant theft.

According to Bessent’s latest announcement: “The Iranian regime will lose the zero-sum game it is playing.” The Treasury Secretary listed out the following new policy and plan:

• Any damage it inflicts on our allies in the Gulf will be paid for with funds extracted from Iranian Accounts.
• Any tolls paid to the Persian Gulf Strait Authority will be offset by funds extracted from their accounts.
• Every attack Iran launches will only deepen the economic and financial consequences it faces.

Interestingly, there is implicit here a possible acknowledgement that US forces won’t be able to immediately be able to stop Iran from enacting its toll collection protocol, which it has hinted is being done in coordination – or at least with an ‘understanding’ – from Oman, which itself has come under pressure from the Trump administration of late.

Over eighty oil, gas, and vital infrastructure facilities across the Gulf have been hit – with most of the attacks having occurred in March and April – with one recent report estimating up to $58 billion in damage. Iran has sought to justify these attacks as ‘retaliation’ for these Gulf countries hosting American bases during the US unprovoked assault on the Islamic Republic.

An unnamed US official had previously told ABC’s Senior White House correspondent Selina Wang last weekend: “Treasury will utilize all tools available to allow Iranian assets to be made available to our Gulf allies to support rebuilding and repairs for any future damage caused by Iran.”

“The Secretary has also directed his team to assess conditions amongst our Gulf allies and request comprehensive estimates of the costs associated with repairing damage Iran has inflicted since the start of the conflict,” the source had added.

Also as part of that earlier reporting, it was revealed:

The Iranian assets could include frozen assets and ships the U.S. has seized. The administration is reaching out to Gulf allies right now and asking for their evaluation.

This is only likely to further derail efforts to get Tehran and Washington back to the negotiating table. Already the US has balked at Iran’s own insistent it be given reparations for damage done.

Iran is meanwhile still demanding that its billions in funds long frozen by Washington be given back as part of a deal. The Trump administration has so far rejected this, at least in terms of its public-facing position.