The US Treasury Department is exploring a plan to redirect a portion of Iran’s frozen assets, estimated at $24 billion, toward Gulf allies as compensation for damage caused by Iranian military strikes. Treasury Secretary Scott Bessent has ordered his team to compile damage assessments from affected nations, signaling the administration is serious about turning financial pressure into tangible reconstruction funding.
The proposal surfaced on June 6, 2026, shortly after fresh Iranian attacks targeted Kuwait and Bahrain. Bessent has indicated willingness to use all available authorities to channel frozen funds toward recovery costs, covering both past destruction and future protective measures against ongoing Iranian military activity in the region.
The financial battlefield
Iran’s globally frozen wealth is estimated between $100 billion and $120 billion, with roughly $2 billion held within the United States. The $24 billion figure under discussion represents the portion the US believes it can legally redirect.
Iran has called the plan flatly illegal. Tehran is not just objecting, it’s counter-punching with demands for the unfreezing of its own $24 billion and an additional $270 billion in damages from the United States.