The US Treasury is preparing to seize Iranian assets to compensate Gulf allies for damages inflicted by Iran, a source revealed, as hostilities continue despite a fragile ceasefire.
Treasury Secretary Scott Bessent has ordered an assessment of costs for repairs to Kuwait and Bahrain, which were hit by Iranian strikes. The move follows Tehran's demand for the release of $24 billion in frozen assets as a condition for peace.
Iran launched drones and missiles over the weekend, targeting US bases in Kuwait and Bahrain. US forces intercepted most projectiles but reported "material damage" in Kuwait. No casualties were confirmed.
Pakistani Interior Minister Mohsin Naqvi visited Tehran on Saturday carrying a letter from Pakistan's leaders to Iran's Supreme Leader Ayatollah Mojtaba Khamenei, as mediation efforts continue.
The conflict has driven up global oil prices and disrupted supply chains. President Trump stated Iran retains about 21% of its missile capabilities, down from pre-war levels.
In a separate theater, Israeli strikes killed three Lebanese soldiers in southern Lebanon, complicating US-backed ceasefire efforts involving Hezbollah.