Full Breakdown
Treasury Plans to Deploy Frozen Iranian Assets for Gulf Reconstruction
6/12/2026, 2:26:22 AM
Treasury Initiative to Tap Iranian Funds
U.S. Treasury Secretary Scott Bessent is preparing to use frozen Iranian assets to finance rebuilding for Gulf states damaged by Iran’s missile and drone attacks since the war began in February. The department will use “all available authorities” and has asked Saudi Arabia, the United Arab Emirates, Qatar, Kuwait, Bahrain and Oman to submit cost estimates for repairs.
War Damage and Economic Impact
Iran’s strikes have hit all Gulf nations, prompting closures of the Strait of Hormuz and raising oil and gas prices. Indirect U.S.–Iran peace talks continue, but Tehran insists any agreement must lift sanctions and release billions of dollars in frozen assets.
Key Actors
- Scott Bessent – Treasury Secretary directing asset-use plan.
- Jared Kushner – Senior negotiator and investor; his firm Affinity Partners manages $6.2 billion from investors such as the UAE, Saudi Arabia and Qatar.
- Mohsen Rezaei – Military adviser to Iran’s Supreme Leader, calling the frozen funds “our own money, not America’s money.”
- Islamic Revolutionary Guard Corps (IRGC) – Issuing warnings of further strikes if Israel expands attacks.
- Israel Defense Forces (IDF) – Reporting defensive missile interceptions.
Financial Scope
$24 billion in Iranian assets remain frozen abroad; Iran seeks an immediate release of $12 billion. Kushner’s firm oversees $6.2 billion in funds, with Gulf investors paying “tens of millions” in fees annually.
Official Statements & Responses
Treasury officials say cash in frozen accounts and oil tankers could be mobilized for reconstruction. Iranian officials maintain that any settlement must include sanction relief, framing the assets as a “test of trust.” The IDF confirmed systems were active during recent missile interceptions.
Criticism & Opposition
Legal analysts flag a conflict of interest: Kushner’s role as chief negotiator and investor raises questions about the legality of diverting assets that could benefit his clients. Affinity Partners’ chief legal officer, Ian Brekke, asserts compliance with laws, while critics argue the plan “chills” negotiations on a truce extension, Strait of Hormuz reopening, and Iran’s nuclear program.
Verbatim Quotes
- “If it expands its attacks in that area, or responds to Iran’s action, it will face more forceful blows, and devastating attacks will be launched,” — Islamic Revolutionary Guard Corps (IRGC)
- “our own money, not America’s money.” — Mohsen Rezaei, adviser to Iran’s Supreme Leader
- “I served in government, and I think my track record is pretty impeccable. Now I’m a private investor.” — Jared Kushner
- “always operated in the best interests of the United States.” — Ian Brekke, Chief Legal Officer, Affinity Partners
Conflicting Reports & Gaps
Sources differ on the amount earmarked for release ($24 billion total vs. $12 billion requested) and on which assets (cash versus oil tankers) would be used. No definitive legal framework for repurposing the frozen holdings has been disclosed.
Outlook: Next Steps
The Treasury expects Gulf allies to submit damage estimates within weeks, after which the administration will determine legal mechanisms for asset deployment. Ongoing negotiations aim to balance reconstruction aid with broader diplomatic goals, including a truce extension and renewed talks on Iran’s nuclear program.
