The US government is preparing a financial framework that would allow frozen Iranian state assets to be repurposed to fund recovery and reconstruction efforts across the Persian Gulf, CNN reported. Compensating for missile strike damages The Treasury Department is actively studying legal and financial mechanisms to divert Iranian funds. The plan aims to support Gulf states that may suffer damage from future Iranian operations, while also exploring ways to retroactively compensate nations for infrastructure damage inflicted by Tehran’s previous assaults.JOIN US ON TELEGRAMFollow our coverage of the war on the @Kyivpost_official. Bessent’s team is slated to evaluate the security and economic situation across the Persian Gulf, officially requesting comprehensive cost estimates for damages incurred since the onset of the current regional conflict. The emergence of the US asset-diversion plan coincides with a series of fresh kinetic strikes launched from Iranian territory. Both Kuwait and Bahrain recently reported that their air defense networks successfully intercepted multiple incoming ballistic missiles fired by Iranian forces. By linking the frozen assets directly to the destruction caused by these missile incursions, Washington aims to establish an economic deterrent against further cross-border bombardments. A diplomatic and financial deadlock The Treasury Department’s initiative directly complicates an ongoing diplomatic standoff over these exact financial reserves. Just days prior, senior Iranian military officials put forward a strict ultimatum, declaring that any prospective peace agreement with the US hinges entirely on the White House authorizing the release of $24 billion in frozen Iranian assets.