US Treasury chief Bessent vows to tap Iran funds for its damage on Gulf allies

Washington: US Treasury Secretary Scott Bessent vowed Thursday to use Iranian funds to pay for damages that the country causes on Gulf allies, warning of sharp economic consequences from Tehran's attacks.

"Any damage it inflicts on our allies in the Gulf will be paid for with funds extracted from Iranian Accounts," Bessent wrote on X.

His comments came as Washington issued fresh threats in the war with the Islamic republic, and President Donald Trump said Thursday morning that he would launch new strikes on the country and eventually take its key oil infrastructure.


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The United States and Israel launched strikes targeting Iran from late February, sparking a war that has engulfed the Middle East and snarled key energy supply chains -- sending energy costs rocketing.

Bessent said Thursday that Tehran's attacks "will only deepen the economic and financial consequences it faces."

He also added that "any tolls paid to the Persian Gulf Strait Authority will be offset by funds extracted from their accounts."

The authority is Iran's new agency to collect fees for transiting the Strait of Hormuz, a critical waterway for energy transit that Tehran has essentially closed off since early in the war.

On Thursday, the agency said Hormuz would be completely closed until further notice.

Bessent previously said that Washington would not tolerate efforts to impose a tolling system in Hormuz, threatening further economic sanctions against parties involved in its implementation.