Iran’s Deputy Foreign Minister Kazem Gharibabadi on Sunday dismissed reports that the United States could use frozen Iranian assets to compensate regional allies for war-related damages, asserting that regional governments are “not in a position to demand reparations”.
In a statement posted on X, Gharibabadi emphasised that Iran’s assets are “neither war spoils for Washington nor a payment fund for its allies”.
His remarks follow a Reuters report on Saturday, citing a source familiar with the matter, which claimed US intended to make Iranian assets available to Gulf allies to support rebuilding and repairs for future damage caused by Iran.
According to the source, US Treasury Secretary Scott Bessent has already directed a team to assess the cost of damage inflicted on Gulf allies by Iran in the past, as Washington considers utilising those assets for historical reparations.
The regional conflict has seen Iran launch missile and drone attacks on several Gulf countries, with Tehran stating it was targeting US and Israeli interests.
Most recently, on Saturday, Iran confirmed it had launched ballistic missiles at US bases in Kuwait and Bahrain.
The US military reported that six missiles were intercepted and a seventh failed to reach its target, while Kuwait confirmed material damage and Bahraini authorities urged residents to seek shelter.
The financial stakes of the conflict are significant. A report by research firm Rystad Energy in April estimated that the Middle East conflict could result in repair costs of as much as $58 billion for energy-linked infrastructure alone.
Gharibabadi warned that any seizure, transfer, or allocation of Iranian assets without the consent of the Iranian government would constitute “a new internationally wrongful act”.
He noted that such a move would incur US responsibility at a time when Washington claims to be seeking negotiation and understanding with Tehran. The deputy foreign minister added that any such action would prompt an “appropriate response” from Iran, though he did not provide further details.
