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AAP
AAP
David Lawder, Eman Abouhassira and Ahmed Elimam

US eyes Iranian assets for Gulf allies' reconstruction

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

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

The disclosure came a day after Mohsen Rezaei, an adviser to Iran's supreme leader, told CNN a peace deal to end the three-month war hinged on the release of $US24 billion ($A34 billion) in Iranian assets frozen by the US.

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