Washington is exploring the possibility of using Tehran's frozen assets to fund reforms in Gulf states.

June 7, 2026 (PEN) - The United States is considering redirecting frozen Iranian assets to Gulf states to fund repairs for any damage Tehran might cause in the future, a day after Iranian attacks targeted Kuwait and Bahrain, according to a source familiar with the matter who spoke to Reuters on Saturday.

According to the source, US Treasury Secretary Scott Bisent has tasked a team with assessing the costs of the damage Iran has already inflicted on Gulf states. The source added that Washington will also consider using Iranian assets to cover those repairs. The source did not specify what type of assets the Treasury Department is examining.

This move comes amid stalled negotiations between Tehran and Washington to end the war, and Iran's insistence that any agreement must include the release of $24 billion of its frozen assets held by the United States, according to Al-Sharq News.