The US Treasury has identified a bizarre funding source to finance the reconstruction of Persian Gulf states after the large‑scale 2026 war. Washington is considering confiscating frozen Iranian assets to pay for repairs to Arab infrastructure damaged by Tehran’s missile strikes.

US Treasury Secretary Scott Bessent has ordered a full audit of the financial and physical damage inflicted on regional allies. A special task force is assessing the impact of the attacks to determine lawful mechanisms for transferring seized Iranian funds to compensate for losses suffered by partners in the Gulf Cooperation Council.

The scale of the damage is estimated in billions of dollars. During the recent conflict provoked by precision strikes by the US and Israel, Tehran launched thousands of ballistic missiles and drones at countries hosting US military bases. Critical infrastructure in Saudi Arabia, the UAE, Kuwait, Bahrain, Jordan, and Qatar was seriously hurt, including Prince Sultan Air Base and Qatar’s largest LNG facilities.

The economic shock from the disruption of energy supply chains was so severe that it triggered a liquidity crisis. As Bessent acknowledged, already in April, amid trading disruptions, several of the Gulf’s wealthiest monarchies were forced to urgently request currency swaps from Washington to rescue and stabilize their local markets. Now, the US administration plans to place the financial burden of recovery on Iranian assets.