Iran Rejects Proposal To Use Its Funds For US Ally Reparations

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Iran’s Deputy Foreign Minister Kazem Gharibabadi has warned that regional governments are not entitled to demand reparations, following reports that the United States may use Iranian assets to compensate Gulf allies for war-related damage.

In a statement posted on social media platform X on Sunday, Gharibabadi said Iran’s frozen funds “are neither war spoils for Washington nor a payment fund for its allies”.

His remarks came after a Reuters report citing a source familiar with the matter, which claimed Washington was considering making Iranian assets available to support reconstruction efforts in Gulf states affected by recent conflicts.

The report also suggested that US Treasury Secretary Scott Bessent had directed officials to assess the cost of damage sustained by US allies in the region.

During the conflict, Iran reportedly launched missile and drone attacks on several Gulf countries, saying it was targeting US and Israeli interests in the Middle East.

On Saturday, Iran said it fired ballistic missiles at US bases in Kuwait and Bahrain, although the US military stated most of the missiles were intercepted, with only minor damage reported in Kuwait and no casualties in Bahrain.

Gharibabadi warned that any seizure or redistribution of Iranian assets without Tehran’s consent would amount to an “internationally wrongful act” and could trigger a response from Iran.

He also accused some regional states of allowing their territory to be used in actions against Iran, saying they should instead compensate Tehran for damages suffered.

Iran continues to demand the release of billions of dollars in frozen assets as part of ongoing negotiations with the United States, alongside calls for sanctions relief and recognition of its strategic role in the Strait of Hormuz.

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