The push to use Iranian assets to help Gulf allies recover from war damage is gaining momentum, with the US Treasury Department now preparing to put Tehran’s own resources toward rebuilding efforts. According to a source familiar with the thinking of Treasury Secretary Scott Bessent, the plan would direct Iranian assets toward repairing the destruction caused by Iran’s regime during the ongoing conflict.

The strategy, shared with CBS News on Saturday, reflects a broader effort to hold Iran financially responsible for the damage its attacks have inflicted on America’s regional partners.

The Core of the Plan

At its heart, the proposal is straightforward: make Iran help pay for the harm Iran has caused.

The source said the Treasury intends to use every available authority to unlock Iranian assets so they can be channeled into rebuilding and repair work tied to any future damage Tehran inflicts. In other words, if Iran continues its strikes, its own frozen or seized resources could help fund the recovery of the very nations it targets.

This represents a notable shift in how the US is approaching the financial side of the conflict — turning Iran’s assets into a tool for supporting its allies.

Counting the Cost of the Damage

Beyond future damage, the Treasury is also looking backward at the destruction already done.

Secretary Bessent has reportedly instructed the department to gather detailed cost estimates from Gulf allies, asking them to tally the expenses involved in repairing the damage Iran has caused since the war began. These figures would give Washington a clearer picture of the scale of destruction across the region.

On top of that, the source said the Treasury will examine whether Iranian assets could be used to help cover repairs for damage that has already occurred — not just damage that might happen down the line.

Key elements of the approach include:

• Using all available legal authorities to access Iranian assets.
• Collecting comprehensive repair-cost estimates from Gulf allies.
• Evaluating whether those assets can fund both past and future rebuilding.

Which Assets Are in Play?

One major open question is exactly what kind of Iranian assets might be used.

It remains unclear whether the funding would come from Iranian cash sitting in frozen bank accounts, or from physical holdings such as oil tankers. Each option carries its own legal and logistical challenges, and the Treasury has not specified which route it would take.

This ambiguity matters because the type of asset involved could shape how quickly — and how easily — the plan can be put into action.

A Complication in the Peace Talks

The timing of this plan adds a layer of tension to the delicate diplomacy already underway.

The US and Iran are currently engaged in indirect peace talks, and Tehran has made its priorities clear. Iran insists that any agreement must include the lifting of sanctions, which would allow the release of billions of dollars in Iranian assets frozen abroad.

That demand sits in direct opposition to the Treasury’s plan. While Iran wants its frozen funds released and returned, Washington is exploring how to redirect those same assets toward rebuilding the Gulf states that Iran has been attacking.

The result is a clash of objectives that could make the negotiations even harder to resolve.

A War That Has Spread Across the Gulf

To understand why this plan exists, it helps to look at the broader conflict.

Since the war erupted in late February, Iran has carried out intermittent missile and drone strikes against every Gulf state in the region. The list of targets is wide-ranging and includes Saudi Arabia, the United Arab Emirates, Kuwait, Bahrain, Qatar, and Oman.

These repeated attacks have left a trail of damage across multiple countries, creating the very recovery needs that the Treasury’s plan is now trying to address. With so many allies affected, the cost of rebuilding is likely to be substantial.

Why This Approach Stands Out

Using a hostile nation’s own assets to repair the damage it caused is not a routine policy move. It blends financial pressure with a form of accountability, sending a clear signal to Tehran about the consequences of continued aggression.

For Gulf allies, the appeal is obvious. They face real costs from the strikes, and a funding source drawn from Iranian assets could ease the financial burden of recovery without relying solely on their own budgets or US aid.

For Washington, the plan offers a way to support partners while keeping pressure on Iran — a balance that fits the broader strategy of the conflict.

What Comes Next

For now, much remains undecided. The Treasury still needs to determine which assets to use, finalize the legal mechanisms, and gather the cost estimates from Gulf allies that will define the scope of the effort.

At the same time, the plan’s success may hinge on the outcome of the peace talks. If a deal eventually requires releasing Iran’s frozen assets, that could directly conflict with any effort to redirect those funds toward rebuilding.

The bigger picture is clear, though. As the war continues to reshape the Gulf, the question of who pays for the damage has become a central battleground of its own. And with the Treasury’s plan to put Iranian assets to work for Gulf allies, Washington is signaling that it wants Tehran to bear at least part of the cost of the destruction it has caused.