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Tehran Rejects U.S. Plan to Use Frozen Assets for Regional Reparations

Iran’s Deputy Foreign Minister Kazem Gharibabadi has declared that regional governments hold no standing to demand compensation, dismissing reports that the United States intends to leverage frozen Iranian assets to cover war-related damages sustained by Gulf allies.

Tehran Rejects U.S. Plan to Use Frozen Assets for Regional Reparations

Gharibabadi took to social media to frame the potential seizure as an internationally wrongful act, asserting that Iranian funds are neither spoils of war for Washington nor a reserve for its regional partners. His statement follows reports that U.S. Treasury Secretary Scott Bessent has tasked a team with assessing repair costs for infrastructure damaged by Iranian missile and drone strikes. Estimates from Rystad Energy suggest that energy-linked facility repairs alone could exceed $58 billion.

Tehran maintains that any transfer of these funds without its consent would trigger an unspecified but appropriate response. The dispute complicates ongoing negotiations aimed at ending the current conflict, where the release of frozen billions remains a primary demand for the Iranian leadership. Instead of paying reparations, Gharibabadi argued that regional nations should compensate Iran for hosting facilities used in aggression against its territory, while reiterating Tehran's call for the lifting of international sanctions and the recognition of its regional influence.

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