Investing.com -- The United States is preparing to use seized Iranian assets to assist Gulf Cooperation Council allies following the heavy destruction caused by the Middle East conflict. According to reporting from Reuters, citing a source familiar with the matter, Washington intends to mobilize these frozen funds to support rebuilding efforts and infrastructure repairs across the region.

U.S. Treasury Secretary Scott Bessent has directed his department to evaluate the physical and financial conditions among affected Gulf states. This team will assess the total economic costs of the widespread damage inflicted by Tehran during the multi-nation clashes.

The review ordered by the Treasury Department will also expand beyond future protection and stabilization efforts. The source familiar noted that the U.S. will consider whether these liquidated Iranian assets can legally be utilized to pay for past damages suffered by regional partners.

This initiative occurs amid the 2026 Iran war, a conflict triggered by joint U.S. and Israeli precision strikes against Iranian military and nuclear facilities. Tehran retaliated with a massive bombardment of thousands of ballistic missiles and drones targeting host nations of U.S. military bases.

The retaliatory strikes heavily hit infrastructure across Saudi Arabia, the United Arab Emirates, Qatar, Kuwait, Bahrain, and Jordan. Military installations like Prince Sultan Air Base and vital energy sectors, including Qatari liquefied natural gas facilities, sustained what is estimated to be billions of dollars in damages.

Faced with severe energy shocks and commercial disruption, several Gulf allies initially requested emergency currency swap lines from the Treasury to stabilize local markets, Bessent said in April.