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US eyes Iranian assets for Gulf allies’ reconstruction, source says

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The U.S. government will attempt to redirect ​Iranian assets to Gulf states for rebuilding and repairs of damage caused by Iran, a source familiar with the matter said, as Tehran followed up a wave of strikes ‌against Kuwait and Bahrain with further drone launches.

U.S. Treasury Secretary Scott Bessent has directed a team to assess costs for damages already inflicted on Gulf allies by Iran, the source said, adding that the U.S. will consider using Iranian assets for repairs of any future destruction as well, Reuters reported.

The disclosure came a day after Mohsen Rezaei, an adviser to Iran’s supreme leader, told CNN that a peace deal to end the three-month war hinged on the release of $24 billion in Iranian assets frozen by the United States.

The source on ​Saturday did not specify what kind of assets the Treasury was examining. The language used to describe the new measures did not appear limited to frozen assets.

The threatened redirection of Iranian ​assets could create a new irritant to a fragile ceasefire between the United States and Iran, which was tested again this weekend with strikes by the ⁠U.S. and Iran.

Peace negotiations appear to have stalled, although a minister from mediator Pakistan traveled to Tehran on Saturday with a letter for Iran’s Supreme Leader Ayatollah Mojtaba Khamenei, Iran’s semi-official ISNA news agency reported.

U.S. forces ​struck Iranian coastal radar sites in Goruk and Qeshm Island, both in the Strait of Hormuz, early Saturday after shooting down drones launched by Iran that U.S. Central Command says posed a threat to maritime ​traffic. A further two Iranian attack drones that were threatening shipping in the strait were also shot down, the U.S. military said late on Saturday.

Iran’s Revolutionary Guard said it retaliated against U.S. bases in Kuwait and Bahrain, and Kuwait’s army said on Saturday it engaged seven ballistic missiles that passed over residential areas, resulting in material damage but no casualties.

In Bahrain, sirens sounded and residents were urged to seek shelter. Kuwait and Bahrain condemned the strikes.

PAKISTANI MINISTER LANDS IN TEHRAN

Iran later ​said it had hit U.S. bases in both countries with ballistic missiles, but the U.S. military said six missiles were intercepted and a seventh did not reach its target.

The U.S. and Iran have been engaged ​in largely indirect negotiations for an interim deal to halt the three-month-old war that would leave issues including Iran’s nuclear programme to further negotiations.

But a deal has remained elusive while the two sides have periodically skirmished.

Tehran wants access to ‌billions of dollars ⁠in oil revenue, waivers on sanctions on crude exports, the lifting of a U.S. blockade on its ports and leverage over the Strait of Hormuz.

Iran has effectively blocked the waterway, where about a fifth of global oil traffic transited before the war.

Iranian state media reported that Pakistani Interior Minister Mohsin Naqvi arrived in Tehran on Saturday for talks with Iranian officials, including Foreign Minister Abbas Araqchi.

Naqvi said he was carrying a “special letter” from his country’s army chief and prime minister to Khamenei, ISNA reported.

Trump is facing mounting domestic political pressure due to rising gas prices to bring the unpopular war to an end. He told ​NBC that while most of Iran’s drone and missile ​manufacturing facilities had been destroyed, the Iranians ⁠still had access to about a fifth of their missiles.

“They have some missiles, they have some drones. I would say percentage wise, maybe 21% to 22% of their missiles. It’s a lot of missiles, but it’s not what it was when we first attacked,” Trump told NBC News’ “Meet the Press” program, according to ​excerpts released by the network on Friday.

The conflict has driven up oil prices and disrupted supply chains for other goods, including humanitarian aid.

FIGHTING FLARES ACROSS REGION DESPITE ​CEASEFIRES

In a parallel conflict in ⁠Lebanon, two Lebanese army officers and a soldier were killed in an Israeli strike on a military vehicle in south Lebanon, the Lebanese army said. The Israeli military said it was investigating the incident.

Iran has made a ceasefire in Lebanon between Israel and Iran-aligned Hezbollah a condition for any peace deal with Washington.

Lebanon’s army said on Saturday its commander, General Rudolf Haykal, left for Pakistan at the invitation of his Pakistani counterpart, without giving further details.

The ⁠surprise visit was ​notable given the insistence by Washington — and by Lebanese leaders, including the president — that ceasefire talks for Lebanon remain separate ​from U.S.-Iran negotiations mediated by Pakistan.

Hezbollah leader Naim Qassem this week rejected a U.S.-brokered pact between Israel and the Lebanese government to halt the fighting in Lebanon. The deal did not provide for an Israeli withdrawal and Hezbollah had not been party to the ​negotiations.

Israel has said its forces would not withdraw or halt operations in the country amid increasing friction with the U.S.

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US launches major strikes on Iran as Tehran retaliates across Gulf

The latest escalation marks one of the most intense exchanges since the conflict began earlier this year, raising fresh concerns about regional stability.

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The United States carried out multiple waves of airstrikes against Iran early Monday, targeting military infrastructure in response to Tehran’s recent attack on a commercial container ship in the Strait of Hormuz, while Iran retaliated by launching missiles and drones at several countries hosting US military forces across the Middle East.

The latest escalation marks one of the most intense exchanges since the conflict began earlier this year, raising fresh concerns about regional stability despite ongoing diplomatic efforts aimed at securing a lasting ceasefire.

According to the US Central Command (CENTCOM), approximately 140 targets were struck during the operation, including missile and drone launch sites, ammunition depots, communications facilities and other military installations.

“The Strait of Hormuz is a vital maritime corridor for global trade,” CENTCOM said in a statement.

“Iran does not control it. US forces are postured and prepared to ensure that freedom of navigation remains available to commercial shipping despite Iran’s continued unwarranted aggression, harassment, threats and arbitrary declarations.”

President Donald Trump defended the operation, saying in an interview with NBC’s Meet the Press: “We bombed the hell out of them last night.”

Iranian state media reported explosions in several locations across the country early Monday and said at least one person had been killed in the strikes.

In response, Iran launched missiles and drones toward several Gulf states, triggering air defence systems across the region.

Missile warning sirens sounded in Bahrain, home to the US Navy’s Fifth Fleet, while Kuwait said its air defence systems intercepted incoming projectiles. There were no immediate reports of casualties or significant damage.

Iran’s retaliatory strikes also targeted Qatar, which has played a key role in mediating ceasefire negotiations, as well as the United Arab Emirates, whose military said its air defences successfully intercepted Iranian missiles and drones.

Iran’s paramilitary Revolutionary Guard confirmed it had begun retaliatory operations following the US attacks.

The Strait of Hormuz remains at the centre of the crisis. The strategic waterway, through which a significant portion of the world’s oil and natural gas exports pass, has become the main point of contention in negotiations between Washington and Tehran.

Iran has insisted it has the authority to control access to the strait and has threatened to impose charges on vessels using the route. The United States maintains that international shipping must continue without interference.

“The era of one-sided deals is over,” Iranian Parliament Speaker Mohammad Bagher Qalibaf wrote on social media.

“We told you: keep your word or pay the price. Reality is knocking.”

Although Iran has declared the strait closed, US officials insist commercial shipping remains possible under the protection of American naval forces, which have established alternative routes closer to Oman’s coastline.

The continued attacks on vessels transiting the area have disrupted global shipping and energy markets, although oil prices have retreated from earlier wartime highs.

The latest military action comes as international mediators continue efforts to preserve a 60-day interim agreement intended to pave the way for a permanent end to hostilities.

Pakistan, Qatar and Egypt remain engaged in diplomatic efforts to prevent the conflict from widening.

United Nations Secretary-General António Guterres warned that renewed large-scale fighting would have severe consequences for the region.

“A return to full-scale hostilities would have catastrophic consequences,” Guterres said.

Meanwhile, Iran’s new Supreme Leader, Ayatollah Mojtaba Khamenei, issued his first public statement since succeeding his late father, vowing that Iran would avenge the killing of Ayatollah Ali Khamenei and continue resisting what he described as foreign aggression.

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US strikes Iran, Tehran says Strait of Hormuz closed, Gulf states hit

Abbas Araqchi has accused the United States of violating the ceasefire agreement. “There can only be mutual compliance,” he wrote on X on Friday.

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The US military launched fresh strikes on Iran after it struck a container ship on Sunday, ‌while Tehran said it had again closed the Strait of Hormuz and escalated attacks on US facilities in states across the Gulf, Reuters reported.

A series of attacks between the US and Iran over the past several days led President Donald Trump to declare the end of a ceasefire meant to halt the fighting that the US and Israel began on February 28, though Trump has left the door open to continued negotiations.

Iran said it closed the strait after firing a warning ​shot that struck a vessel traveling on an unapproved route. It warned that any retaliation over the incident would be met with a “severe response.”

US Central Command, however, said commercial ​vessels continue to transit through the waterway that carried one-fifth of the world’s oil and LNG shipments before the war.

Central Command said US forces hit 140 Iranian military targets on Saturday, out of more than 300 during three nights of strikes “to degrade Iran’s ability to attack civilian mariners and commercial vessels ​freely transiting the strait.”

Iranian state media reported explosions in a number of port cities.

In response, Iran’s Revolutionary Guards said on Sunday they had destroyed a command and control center and drone hangars at ​a base in US ally Jordan, targeted a US military radar site in Kuwait, attacked US aircraft carrier support and refueling platforms in Oman and destroyed a fighter jet maintenance centre and command and control facility in Qatar.

The Guards also said they had struck and disabled a second vessel in the Strait of Hormuz, read the report.

The United Arab Emirates said its air defense systems engaged missiles and drones from Iran, while warning sirens sounded in Bahrain and ​explosions were heard in Doha.

Tehran’s strikes marked a sharp escalation in pace and targets. In recent weeks, Iran had hit sites in Kuwait and Bahrain while avoiding Qatar since early April and ​the UAE since early May.

The war has destabilized the Gulf, while Iran’s effective blockade of the Strait of Hormuz has caused energy prices to surge, fuelling global inflation and raising fears of an economic slowdown.

Higher prices, ‌especially for ⁠gasoline, are a politically sensitive issue for Trump ahead of November congressional elections.

Iran said several ships attempted to move through the waterway on an “unauthorized route” and disregarded warnings to correct their course. The strait will remain closed until “the end of US interference in this region,” the Revolutionary Guards said.

Iran’s Foreign Minister Abbas Araqchi has accused the United States of violating the ceasefire agreement. “There can only be mutual compliance,” he wrote on X on Friday.

On Sunday, Iran’s top negotiator Mohammad Baqer Qalibaf posted on X: “The era of one-sided deals is OVER. We told ​you: keep your word or pay the price. ​Reality is knocking.”

The US revoked the license authorizing ⁠the sale of Iranian crude on Tuesday after three Qatari and Saudi commercial tankers came under fire earlier in the week, prompting the US to hit Iranian sites. Iran then struck US military sites in Gulf states, Reuters reported.

While Iran has not claimed responsibility for the ship attacks, analysts say Tehran uses ​such actions to gain leverage in negotiations.

Araqchi and Omani Foreign Minister Badr Albusaidi met in Oman to exchange “views on appropriate mechanisms for the ​safe passage of ships through ⁠the Strait of Hormuz,” according to a statement from the Iranian foreign minister. Oman’s state news agency said Omani and Iranian negotiators would continue talks “at the technical and political levels.”

A written statement from Iran’s new supreme leader, Ayatollah Mojtaba Khamenei, on Saturday threatened vengeance for the death of his predecessor and father, who was killed in the war’s initial attacks. It said the vengeance would take place whatever happened to ⁠Iran.

“We pledge to ​avenge the blood of the martyred leader and all the martyrs,” the message said.

The statement was released to mark ​funeral ceremonies for the former leader, Ayatollah Ali Khamenei, on Thursday. His son did not attend the ceremonies and has not been seen in public since the war began.

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Iran’s Supreme Leader vows revenge for father’s death

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Iran’s Supreme Leader Ayatollah Mojtaba Khamenei said ​on Saturday that ‌avenging his slain predecessor and father was “the demand of ​the nation” and “must ​certainly” take place, according to ⁠a written message ​published on the official website of Ayatollah Khamenei.

Khamenei issued the message on the occasion of funeral ceremonies for ​his father, Ayatollah ​Ali Khamenei, held months after he ‌was ⁠killed in the U.S.-Israeli airstrikes on February 28.

“We pledge to avenge ​the blood ​of ⁠the martyred leader and all the ​martyrs of these ​two ⁠wars from the criminal and disgraced killers,” Khamenei ⁠said ​in the ​message.

“The criminals will take their dream of a peaceful death in bed to the grave with them,” he added.

Mojtaba Khamenei also expressed appreciation for the attendance of tens of millions of mourners from Iran and Iraq.

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