Iran rejects idea of its frozen funds being used to repair damage to Gulf states

A smoke plume rises over Abu Dhabi from the site of an Iranian missile strike on February 28, 2026. (AFP)
A smoke plume rises over Abu Dhabi from the site of an Iranian missile strike on February 28, 2026. (AFP)

Iran’s Deputy Foreign Minister Kazem Gharibabadi says that regional governments were “not in a position to demand reparations,” responding to reports that the US could use Iranian assets to compensate regional allies for war-related damages.

Gharibabadi adds in a post on X that Iran’s assets were “neither war spoils for Washington, nor a payment fund for its allies.”

A source familiar with the matter told Reuters on Saturday that the US will make Iranian assets available to Gulf allies to support rebuilding and repairs for future damage caused by Iran.

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