US Initiates War, Iran 'Tricked' into Paying Compensation for Damage in Arab Nations
WASHINGTON — The United States plans to offer its allies in the Persian Gulf the opportunity to use Iranian assets to cover damages incurred during Middle East conflicts, according to a Reuters report citing a source on Sunday (7/6/2026). According to the report, the US will provide these Iranian assets to its Gulf allies to support their reconstruction efforts and provide compensation for potential future damages.
The US is also considering using these assets to repair previous damages, the Reuters report stated. This US plan is likely to be rejected by Iran, as Tehran has repeatedly insisted that its frozen assets must be released as soon as a peace memorandum of understanding is signed.
Iran stated that at least 50 per cent of its frozen assets must be released immediately following the signing of a memorandum of understanding that may occur with the US, a senior official from the Iranian Ministry of Foreign Affairs told the semi-official Mehr news agency on Friday (5/6/2026).
Iran’s Deputy Foreign Minister for Legal and International Affairs, Kazem Gharibabadi, said various mechanisms are being reviewed to guarantee Tehran’s access to the blocked funds within a potential agreement with Washington.
“At the very least, Iran demands that 50 per cent of these funds be immediately available to Iran after the signing of the memorandum of understanding,” said Gharibabadi.
He added that the remaining funds must be released within a timeframe that Tehran considers reasonable, namely “not more than one or two months.”
Gharibabadi stated that Iran will only consider a document final if all its interests are reflected within it, including what he described as an immediate and permanent cessation of war across all fronts, including Lebanon.
He noted another critical issue is the lifting of what Tehran describes as the maritime blockade. The official suggested that Qatar could play a role in facilitating Iran’s access to its frozen assets through alternative mechanisms, while Washington takes steps to lift restrictions on the funds. He emphasised that any alternative mechanism would not absolve the US of its responsibility to release Iran’s blocked assets in accordance with the draft memorandum of understanding currently under discussion.
According to Gharibabadi, the current draft—which has not yet been finalised—requires the US to release all of Iran’s frozen financial resources in line with the progress of the negotiation process. He stated that this process should not exceed 60 days.
Gharibabadi also stated that the lifting of all unilateral US sanctions, including primary and secondary sanctions, as well as the normalisation of Iran’s status in the UN Security Council and the IAEA Board of Governors, are among Tehran’s primary demands.
On 28 February, the US and Israel began attacking targets in Iran, including Tehran. On the first day of the attacks, Iran’s Supreme Leader, Ayatollah Ali Khamenei, was killed. On 8 April, Washington and Tehran announced a two-week ceasefire. Since then, there have been no reports of hostilities resuming, but the US has initiated a blockade of Iranian ports.
Meanwhile, as negotiations between Iran and the US continue, with recent talks regarding a framework agreement for a memorandum of understanding, both sides continue to launch occasional attacks. The US military has described its strikes as an effort to enforce the naval blockade against Iran and as “self-defence,” while Tehran claims it will retaliate.