US Considers Tapping Iranian Funds for Gulf Damage Amid Rising Tensions

Washington: America is preparing to take a big step to compensate for the damage caused by Iran's attacks. A source quoted by Reuters said that America is considering using Iranian assets to help the Gulf countries. Under the proposal, this money will be used for reconstruction after future attacks, as well as to compensate for the damage already done.

What is America's proposal?

According to sources, US Finance Minister Scott Besant has tasked officials to assess the damage caused to Gulf countries due to Iran's attacks. Officials are also looking into whether the expenses can be met from Iranian assets. However, it was not clear which properties were being talked about. It is believed that this proposal is not limited only to the assets frozen in America, but Iranian funds present abroad can also be included in it.

Why is this step being taken now?

This proposal has come at a time when Iran had launched missile attacks on Kuwait and Bahrain just a day earlier. Tehran has been continuously demanding the US release billions of dollars of funds stuck abroad. In such a situation, this step of America can create new tension in the already delicate diplomatic talks between the two countries.

Why did war break out again amid ceasefire?

Despite the ceasefire, there was another clash between America and Iran on Saturday. US Central Command reported that US forces attacked Iranian coastal radar sites near Qishm Island and Goruk in the Strait of Hormuz. This action was taken after the downing of Iranian drones which were considered a threat to maritime traffic.

In response, Iran fired missiles at US military bases in Kuwait and Bahrain. Kuwaiti officials said seven ballistic missiles passed over residential areas. Although there were no casualties, damage was definitely caused. In Bahrain, people were asked to move to safe places by sounding sirens. Iran's Revolutionary Guard said the targets were American bases. The US Army claimed that six missiles were stopped and one could not reach its target.

Are talks efforts ongoing?

Diplomatic avenues are also open amid military tension. Pakistan, which is playing the role of mediator between Washington and Tehran, is making continuous efforts. Pakistani Home Minister Mohsin Naqvi reached Tehran on Saturday. According to Iranian media, he had taken a special message from Pakistan's military and political leadership to Iran's Supreme Leader Mojtaba Khamenei.

Iran's demands remain the same — return of frozen funds, relief from restrictions on oil exports and ports, and control over ships passing through the Strait of Hormuz. An advisor to Iran's supreme leader had earlier said that the return of 2.4 million trillion stuck in America is an important part of any peace agreement.

Why is the fighting not stopping even after the ceasefire?

Despite the ceasefire, clashes continue on the fronts. Three army personnel, including two officers, were killed in an Israeli attack in Lebanon. Israel said it was investigating the incident.

The Lebanese front is now directly linked to the US-Iran talks. Tehran has made it clear that progress in talks with Washington will happen only if there is a ceasefire between Israel and Hezbollah. At the same time, Israel has said that military action will continue.

Meanwhile, Lebanese Army Commander General Rudolf Haikal went on a visit to Pakistan, which is being linked to the diplomatic stir.