Middle East Conflict: Donald Trump Holds Crucial Meeting On Iran War; Is US Eyeing Tehran's Assets?

Washington: Despite the ceasefire in the Middle East, tensions between the US and Iran are escalating rather than subsiding. The US is now planning to utilize Iran's frozen assets to cover the costs of repairs and reconstruction for damage inflicted upon Gulf nations during the Middle East War. US officials told the media that Washington is seriously considering this move following drone and missile attacks launched by Iran against Kuwait and Bahrain.

Reuters reported on Saturday that US Treasury Secretary Scott Bessent has directed a special team to conduct a detailed assessment of the damage caused by Iran to its Gulf allies. The team will also deliberate on using Iranian resources to fund repairs for any future attacks or destruction.

This development comes just a day after Mohsen Rezaei, an advisor to Iran's Supreme Leader, stated that the release of $24 billion in Iranian assets frozen by the US is essential to ending the ongoing three-month-long conflict.

Why Are There Fears of Renewed Tension in the Middle East?

US officials did not specify exactly which Iranian assets the US Treasury Department is examining, but the terminology used suggests the scope may extend beyond merely frozen assets. The threat to divert Iranian assets could deal a fresh blow to the already fragile ceasefire. The ceasefire has been tested by attacks from both sides this weekend, and peace talks appear to have stalled. However, a minister from Pakistan—acting as a mediator—arrived in Tehran on Saturday carrying a letter for Iran's Supreme Leader, Ayatollah Mojtaba Khamenei; this was confirmed by Iran's semi-official news agency, ISNA.

Why is There Tension in the Strait of Hormuz?

Meanwhile, early Saturday morning, the US military struck Iranian coastal radar installations on the islands of Goruk and Qeshm in the Strait of Hormuz. According to US Central Command, Iranian drones had endangered maritime traffic. Late at night, US forces shot down two more Iranian attack drones. Iran's Islamic Revolutionary Guard Corps launched retaliatory strikes against US bases in Kuwait and Bahrain.

The Kuwaiti military destroyed seven ballistic missiles passing over residential areas; while there was physical damage, no casualties were reported. Sirens sounded in Bahrain, and citizens were advised to seek shelter. Although Iran later claimed to have fired ballistic missiles at US bases in both countries, the US military stated that six missiles were intercepted and a seventh failed to reach its target.

What is the Impact on Oil Production?

Meanwhile, OPEC is set to agree on increasing oil production targets for the fourth consecutive month on Sunday, even though several member nations are unable to reach full production capacity due to the war. The conflict has disrupted global oil supplies and driven up petrol prices. The US and Iran are engaged in indirect talks to end the three-month-long war. While issues such as Iran's nuclear program have been deferred to future discussions under an interim agreement, the process is stalling due to recurring skirmishes.

Is There Mounting Pressure on US President Donald Trump?

Rising petrol prices and inflation have intensified domestic political pressure on President Donald Trump to end the war. In an interview with NBC, Trump acknowledged that while most of Iran's drone and missile facilities have been destroyed, the country still retains approximately 21–22 percent of its total missile stockpile.

What About the Israel-Lebanon Border?

Separately, the Israeli military reported on Sunday that it intercepted two missiles fired from Lebanon before they could enter Israeli territory. This incident occurred a day after two officers and a soldier were killed in an Israeli strike in Lebanon.