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U.S. Weighs Seizing Iranian Assets to Compensate Gulf Allies

Following recent Iranian strikes on Kuwait and Bahrain, the U.S. Treasury is exploring a plan to redirect frozen Iranian assets toward its Gulf partners. Secretary Scott Bessent has ordered an immediate assessment of the damages, a move that signals a hardening stance as regional tensions reach a new boiling point.

U.S. Weighs Seizing Iranian Assets to Compensate Gulf Allies

This strategy risks dismantling a fragile ceasefire already fraying under the weight of renewed cross-border strikes over the weekend. While Pakistan has attempted to mediate by delivering a direct message to Iran’s Supreme Leader, the cycle of mutual retaliation shows no signs of slowing. Diplomatic channels are further obstructed by the stagnation of formal peace negotiations, leaving regional oil markets increasingly volatile and placing domestic political pressure on President Trump.

The geopolitical map is growing more complex as Lebanon enters the fray. Hezbollah has issued a clear mandate that any potential U.S.-Iran agreement must remain strictly siloed from the ongoing ceasefire negotiations between Israel and Lebanon. With indirect talks currently centered on Iran’s nuclear ambitions and economic pressure points, the administration must now balance these competing regional fires without fully collapsing the remaining diplomatic frameworks.

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