Bessent says Iran's frozen assets will pay for Gulf damage, Hormuz tolls

US Treasury Secretary Scott Bessent said Thursday that Iran would be made to pay for damage it has inflicted on Gulf allies using its own frozen funds, and that tolls collected under Tehran’s disputed Strait of Hormuz system would also be offset against Iranian accounts.

What happened: Bessent wrote in a post on X, “The Iranian regime will lose the zero-sum game it is playing. Any damage it inflicts on our allies in the Gulf will be paid for with funds extracted from Iranian Accounts.” 

“Any tolls paid to the Persian Gulf Strait Authority will be offset by funds extracted from their accounts. Every attack Iran launches will only deepen the economic and financial consequences it faces.”

A source familiar with Bessent’s thinking said that he has also directed his team to assess conditions among Washington's Gulf allies and request comprehensive estimates of the costs associated with repairing the damage Iran has inflicted since the start of the conflict. 

“Treasury will further consider whether Iranian assets could be used to support repairs for past damages,” the source added.

Why it matters: The comments come amid escalating regional tensions since the US and Israel began strikes on Iran on Feb. 28. Tehran has responded with attacks on US assets in the region, Israel and neighboring Gulf countries, including strikes on critical infrastructure such as airports and energy facilities.

Iran’s Islamic Revolutionary Guard Corps has also moved to assert control over the Strait of Hormuz, a vital global energy chokepoint that in peacetime carries roughly a fifth of global oil and LNG shipments. Its near-total disruption has triggered a global energy shock, with fears of supply shortages and surging prices.

On May 5, Iran said it had created the Persian Gulf Strait Authority, a state agency tasked with regulating maritime traffic through the strait. The body has imposed tolls on commercial shipping to ensure safe access, a move the US Treasury has described as extortion. Payments have reportedly included fiat currency, digital assets, offsets, informal swaps and in-kind contributions such as charitable donations.

On May 27, the Treasury’s Office of Foreign Assets Control said in a statement that the entity “flagrantly violates international law and US sanctions,” warning that any cooperation would carry sanctions risks.

The US currently has access to roughly $2 billion in frozen Iranian funds, out of an estimated $100 billion held globally. It is unclear whether Washington could reach additional assets abroad, including about $20 billion in China, $7 billion in India, $6 billion in Iraq and around $1.5 billion in Japan, along with roughly $1.6 billion held in EU jurisdictions such as Luxembourg.

Know more: On Thursday, President Donald Trump threatened that the US will be striking Iran “VERY HARD TONIGHT” and would seize control of its key energy facilities. 

In a post on Truth Social, Trump said, “At some point in the not too distant future, we will be taking Kharg Island, and other oil infrastructure points, and assume total control of their oil and gas markets, much like we have with Venezuela, which is working out brilliantly for both Venezuela and the United States of America.”

Soon after making the threat, Trump said on Truth Social that he had canceled the scheduled strikes against Iran, as a peace deal between the two sides was due to be announced “shortly.”

Elizabeth Hagedorn contributed to this report.