Washington is considering using Iranian assets to compensate its Gulf allies.

The US administration is considering redirecting some Iranian resources to finance reconstruction and reparations in Gulf countries affected by Tehran's actions, according to a source close to the matter. This initiative comes amid heightened regional tensions, marked by renewed clashes between the United States and Iran despite ongoing diplomatic efforts.

According to this source, US Treasury Secretary Scott Bessent has tasked a team with assessing the cost of the damage suffered by Washington's allies in the region. US authorities would then examine the possibility of using Iranian assets to help repair this damage.

This prospect comes after statements by Mohsen Rezaei, who asserted that a potential peace agreement would depend, in part, on the release of $24 billion in Iranian assets frozen by the United States. The source cited by Reuters did not specify, however, what types of assets were involved in the ongoing discussions, suggesting that the measures under consideration could extend beyond the frozen funds alone.

Meanwhile, mediation efforts appear to be stalling. A Pakistani minister traveled to Tehran on Saturday with a letter addressed to Mojtaba Khamenei, according to the Iranian news agency ISNA. Pakistan has been trying for several weeks to play a mediating role in order to promote regional de-escalation.

The threat of a reallocation of Iranian resources, however, risks further fueling tensions between Washington and Tehran. Negotiations appear fragile as each side continues to accuse the other of violating the recently agreed ceasefire.

The clashes continued this weekend. US forces announced they had struck Iranian radar installations located in Goruk and on Qeshm Island in the Strait of Hormuz, after intercepting several Iranian drones that Washington considered a threat to commercial shipping.

This new escalation illustrates the fragility of the current truce and underlines the increasing difficulties faced by regional mediators in reaching a lasting settlement of the conflict.