As of June 7, 2026, Iran’s Deputy Foreign Minister Kazem Gharibabadi has publicly rejected the notion that regional governments can claim reparations from Tehran. This stance follows reports that the United States is considering utilizing frozen Iranian assets to compensate Gulf allies for war-related damages, a move Iran describes as an internationally wrongful act that would trigger an appropriate response.
Why is the U.S. considering using Iranian assets for reparations?
According to a report by Reuters, the United States is evaluating the use of Iranian assets to assist Gulf allies in rebuilding and repairing damage caused by Iran during the ongoing conflict. A source familiar with the matter stated that U.S. Treasury Secretary Scott Bessent has directed a team to assess the costs associated with past damages. The initiative aims to support infrastructure recovery, with Rystad Energy estimating in April that energy-linked infrastructure damage could reach as high as $58 billion.
The U.S. military reported that six ballistic missiles launched by Iran at U.S. bases in Kuwait and Bahrain were intercepted, while a seventh failed to reach its target.
What is Iran’s position on asset seizure?
Kazem Gharibabadi, Iran’s Deputy Foreign Minister, stated via X that Iranian assets are “neither war spoils for Washington nor a payment fund for its allies.” Tehran maintains that any seizure or transfer of these funds without its consent is illegal. Furthermore, Iran argues that regional governments hosting facilities used for aggression against Tehran are not in a position to demand reparations and should instead compensate Iran for its own losses.
Comparison: Territorial Claims vs. Asset Recovery
| Party | Stance on Reparations |
|---|---|
| Iran | Demands release of frozen assets and sanctions relief; denies liability for regional damages. |
| United States | Considering using frozen Iranian assets to fund repairs for Gulf allies impacted by Iranian attacks. |
How might this impact future negotiations?
Iran has been actively seeking the release of billions of dollars in frozen assets as part of a framework to end the war. Tehran’s stated conditions for peace include the lifting of international sanctions and formal recognition of its influence over the Strait of Hormuz. By threatening an “appropriate response” to any asset seizure, Iran has signaled that the financial strategy pursued by the U.S. Treasury could complicate current diplomatic efforts to reach an understanding between the two nations.
When tracking international conflict resolution, monitor the distinction between official government statements and third-party infrastructure damage assessments, as these often drive the economic components of peace negotiations.
Frequently Asked Questions
- Has Iran admitted to the missile attacks? Iran confirmed the launch of ballistic missiles targeting U.S. bases in Kuwait and Bahrain, framing them as actions against U.S. and Israeli interests.
- How much is the estimated damage to energy infrastructure? According to Rystad Energy, damages to energy-linked infrastructure could reach $58 billion.
- What does Iran want in exchange for ending the war? Tehran is demanding the release of frozen funds, the lifting of U.S. and international sanctions, and recognition of its sway over the Strait of Hormuz.
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