Iran rejects use of its assets for Gulf war damage payments

Iran has strongly rejected suggestions that its frozen assets could be used to compensate Gulf countries for damage caused during the recent conflict, warning that any such move would violate international law and provoke a response from Tehran.

Iran has strongly rejected suggestions that its frozen assets could be used to compensate Gulf countries for damage caused during the recent conflict, warning that any such move would violate international law and provoke a response from Tehran.

Speaking on Sunday, Iran’s Deputy Foreign Minister Kazem Gharibabadi dismissed reports that the United States was considering making Iranian funds available to regional allies for reconstruction and repair efforts. He argued that countries in the region were not entitled to seek compensation from Iran and insisted that Tehran’s assets could not be treated as a source of funding for Washington’s partners.

In a statement shared on social media, Gharibabadi said Iranian assets were neither war spoils nor a financial reserve that could be distributed among US allies. He warned that any attempt to seize, transfer or allocate Iranian funds without Tehran’s approval would amount to an unlawful act under international law.

His comments came after reports that the United States was exploring options to use Iranian assets to support Gulf countries affected by attacks during the conflict. According to sources familiar with the matter, Washington is examining both future and past damage claims linked to Iranian military actions in the region. US Treasury officials have reportedly been tasked with assessing the overall cost of damage suffered by America’s Gulf allies.

During the war, Iran launched a series of missile and drone attacks targeting locations across the Gulf. Tehran maintained that its operations were aimed at American and Israeli interests in the region rather than at Gulf states themselves.

One of the most significant incidents occurred on Saturday when Iran announced it had fired ballistic missiles at US military bases in Kuwait and Bahrain. The US military stated that most of the missiles were intercepted before reaching their targets. Kuwaiti authorities reported material damage but no casualties, while Bahrain urged residents to take shelter as a precaution.

The financial impact of the conflict has become a growing concern across the Middle East. Earlier estimates from energy research company Rystad Energy suggested that damage to energy-related infrastructure alone could result in repair costs reaching as much as 58 billion dollars.

Gharibabadi argued that some regional governments had allowed their territory and facilities to be used in actions against Iran. For that reason, he said, those countries could not reasonably seek compensation from Tehran. Instead, he claimed that Iran itself deserved compensation for losses and damage suffered during the conflict.

The dispute over frozen assets remains a key issue in ongoing negotiations between Iran and the United States aimed at formally ending the war. Tehran has repeatedly called for the release of billions of dollars held abroad and has demanded the removal of US and international sanctions.

Iranian officials have also sought recognition of the country’s influence over the Strait of Hormuz, a strategically important waterway through which a large share of the world’s energy supplies pass. As negotiations continue, disagreements over compensation and frozen assets are likely to remain among the most challenging issues facing both sides.