US Says Frozen Iranian Funds Could Offset Costs Of Gulf Disruptions

The United States has issued a strong warning to Iran, stating that any economic or military disruption in the Gulf region could trigger financial consequences, including the use of frozen Iranian assets to compensate affected allies. The remarks come amid heightened tensions in West Asia, with concerns growing over the security of key maritime routes such as the Strait of Hormuz, which plays a critical role in global energy shipments.

US Treasury Secretary Scott Bessent said that Iran would ultimately be held financially accountable for any damage caused to US partners in the region. In a post on X, he stressed that the Iranian leadership would “lose the zero-sum game” it is playing and warned that its actions would carry long-term economic consequences.

Bessent further stated that any harm inflicted on Gulf allies would be compensated through funds drawn from Iranian accounts currently frozen under international sanctions. He also suggested that payments linked to maritime passage through the Strait of Hormuz could be offset using those same funds, framing the approach as part of a broader effort to deter escalation and protect regional economic stability.

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The comments come as US President Donald Trump signaled the possibility of further military action against Iran, escalating already strained relations between Washington and Tehran. In a post on Truth Social, Trump claimed that the United States would carry out significant strikes and suggested that Iran’s military capabilities had already been heavily degraded.

Trump also indicated that the US could target Iran’s strategic energy infrastructure, including Kharg Island, a key hub for the country’s oil exports. He further asserted that Iran’s navy, air defence systems, radar installations, and air force capabilities had been largely neutralised, while suggesting broader pressure on Iran’s oil and gas sector. His remarks added to market concerns over potential supply disruptions.

Following the escalation in rhetoric, global oil markets reacted with upward movement. Brent crude and West Texas Intermediate futures both recorded gains as traders factored in the risk of instability in the region. Analysts noted that uncertainty surrounding the Strait of Hormuz, a vital passage for global oil shipments, continues to remain a key driver of energy market volatility.

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