US moves to tap Iranian assets after strikes hit Kuwait, Bahrain
Why it matters: The step could deepen the US-Iran standoff as ceasefire talks falter and Gulf allies seek compensation for damage.
The Trump administration is preparing to redirect Iranian assets to help cover reconstruction and repair costs in Kuwait and Bahrain after Iranian attacks, according to a person familiar with the matter. Treasury Secretary Scott Bessent has ordered a team to assess damage already inflicted on Gulf allies and examine what Iranian assets could be used. The move follows a fresh round of fighting in and around the Strait of Hormuz, where US forces struck Iranian radar sites in Goruk and Qeshm Island after downing drones it said threatened shipping. Iran’s Revolutionary Guard then targeted US bases in Kuwait and Bahrain with ballistic missiles, prompting interceptions and shelter warnings. The proposed asset seizure could further strain a fragile ceasefire as indirect talks remain stalled.