Iran has firmly rejected suggestions that its frozen assets could be used to compensate US allies in the Gulf for damage linked to the ongoing regional conflict, warning that any such move would violate international law.
Deputy Foreign Minister Kazem Gharibabadi said on Sunday that regional governments had no legal basis to seek reparations from Tehran.
His comments came in response to reports that Washington was considering making Iranian assets available to Gulf partners to help cover war-related losses.
In a post on X, Gharibabadi said Iran’s assets were “neither war spoils for Washington nor a payment fund for its allies.”
Reuters reported on Saturday, citing a source familiar with the matter, that the United States was exploring ways to use Iranian funds to support reconstruction efforts and repair infrastructure damaged by Iranian attacks.
The report said the proposal could also cover compensation for previous damage suffered by Gulf states.
According to the source, US Treasury Secretary Scott Bessent had directed officials to assess the financial impact of attacks attributed to Iran on regional allies.
During the conflict, Tehran launched missile and drone strikes against several Gulf countries, saying it was targeting American and Israeli interests in the region.
On Saturday, Iran said it fired ballistic missiles toward US military bases in Kuwait and Bahrain.
The US military said six missiles were intercepted and another failed to reach its target. Kuwaiti authorities reported material damage but no casualties, while Bahrain urged residents to take shelter during the attack.
Energy consultancy Rystad Energy estimated in April that damage to energy-related infrastructure across the region could ultimately exceed $58 billion.
Gharibabadi warned that any seizure, transfer or allocation of Iranian assets without Tehran’s approval would amount to what he described as a new internationally wrongful act, adding that Iran would respond appropriately if such action were taken.
His remarks come as Tehran continues negotiations aimed at ending the conflict and securing the release of billions of dollars in frozen Iranian funds.
The Iranian official also accused some regional governments of assisting attacks against Iran by allowing their territory and facilities to be used by foreign forces. For that reason, he argued, those countries were not entitled to seek compensation and instead should be prepared to compensate Iran for damages it has suffered.
Iran has repeatedly stated that any broader agreement to end the conflict must include access to its frozen assets, relief from US and international sanctions, and recognition of its influence over the strategic Strait of Hormuz, a vital route for global energy supplies.
