US Considers Using Frozen Iranian Assets for Gulf Reconstruction Amid War

On day 99 of the Middle East conflict, the US is considering using $24 billion in frozen Iranian assets to aid Gulf allies in reconstruction after Iranian attacks. The US military shot down two Iranian drones over the Strait of Hormuz and intercepted six ballistic missiles aimed at Bahrain and Kuwait. Treasury Secretary Scott Bessent has ordered an assessment of damage costs from Iranian strikes and the feasibility of using the frozen assets for reconstruction. Iran, meanwhile, demands the release of these assets as a condition for peace talks, while its Revolutionary Guard launched missiles at US allies in retaliation for US strikes. Pakistan is mediating between the US and Iran, with its interior minister delivering a special message to Iran's supreme leader. Iran also protested alleged discriminatory treatment by the US ahead of the 2026 World Cup.

Global Impact

The conflict's expansion to Gulf states threatens global energy security, as the Strait of Hormuz is a critical chokepoint for oil shipments. Economically, reconstruction costs for Kuwait and Bahrain could run into billions, straining their fiscal positions.