The United States is considering using Iran’s seized assets to compensate Gulf countries if they suffer damage from future Iranian attacks, according to a Reuters report citing informed sources. US Treasury Secretary Scott Besant has reportedly instructed a team to assess the extent of potential damages in Gulf allied nations and explore the use of Iranian funds for infrastructure repairs.

The report emerged as Mohsen Rezaei, an adviser to Iran’s Supreme Leader, told CNN that one of Tehran’s conditions for a peace agreement is the release of 24 billion dollars in Iranian assets currently frozen in the United States. Analysts believe peace talks between Washington and Tehran have stalled due to unresolved issues over Iran’s nuclear program, the Strait of Hormuz, and the fate of the seized assets.

The consideration of reallocating Iranian funds underscores the ongoing tension between the two nations and the uncertainty surrounding future diplomatic progress.