Day 99 of Middle East War: US Plans to Use Frozen Assets for Ally Reconstruction — Latest Developments

(Central News Agency, Washington, 6th, Comprehensive Foreign News) On the 99th day of the joint US-Israeli campaign against Iran, informed sources revealed today that the US government plans to transfer Iranian assets to Gulf states for use in rebuilding damages caused by Iran. The previous day, Iran launched attacks on US allies Kuwait and Bahrain.

The following is a compilation of the latest developments in the Middle East war from AFP and other foreign news agencies.

● US and Israeli Movements

The US Central Command (CENTCOM) confirmed that after shooting down four Iranian drones on the 5th, it shot down two more Iranian drones threatening shipping in the Strait of Hormuz on the evening of the 6th. During this period, US forces also successfully intercepted six ballistic missiles fired by Iran at allied nations Bahrain and Kuwait.

Facing an escalation in the Middle East, the US Treasury Department is considering using the frozen $24 billion in Iranian assets to compensate Gulf allies for post-disaster reconstruction. Informed sources revealed that Treasury Secretary Scott Bessent has instructed his team to assess the cost of damages caused by past Iranian attacks and study whether to use these frozen assets to pay for reconstruction and repair costs if future attacks occur.

This idea contrasts with Iran's recent demands. Mohsen Rezaei, an advisor to Iran's Supreme Leader, said in a recent interview with CNN that the success of a US-Iran peace agreement depends on Washington releasing these $24 billion in frozen assets. However, the US side is now evaluating the possibility of redirecting these funds to assist Gulf allies in reconstruction.

● Iran's Movements

Iran's Revolutionary Guards, in retaliation for the US shooting down its drones and bombing coastal radar stations, fired multiple missiles at US allies Bahrain and Kuwait, accusing Washington's provocative actions of undermining the fragile ceasefire. Iranian officials emphasize that only unfreezing the $24 billion in assets can break the negotiation deadlock.

Additionally, according to Iranian media reports, with Pakistan actively mediating the US-Iran dispute, Pakistani Interior Minister Mohsin Naqvi has arrived in Tehran to deliver a "special message" from the key mediator, Army Chief of Staff Asim Munir, to Iran's Supreme Leader Mojtaba Khamenei.

The 2026 FIFA World Cup is set to kick off on the 11th. Iran is dissatisfied with what it calls "discriminatory treatment" of its delegation by the US, one of the host countries.

Despite US Ambassador to Turkey Tom Barrack previously posting on social media platform X praising the issuance of player visas, the Iranian embassy in Turkey and media outlets have revealed that many team members, including Iran Football Federation President Mehdi Taj, as well as technical and management staff, have been denied visas by the US.

● Oil Prices, Exchange Rates, and Stock Market Dynamics

The Middle East conflict has effectively closed the Strait of Hormuz, driving tanker industry profits to a record high of $36 billion in the first quarter of this year, with daily charter rates for large tankers once surging past $380,000. Over 160 tankers remain stranded in the Persian Gulf.

However, the Financial Times reports that with recent US-Iran negotiations, market expectations of a possible reopening of the waterway have caused daily charter rates for large vessels to fall back to between $55,000 and $95,000 in recent weeks. Major global shipowners are warning of a potential sharp correction in freight rates.

Shipping giant CMB Tech warns that the recent surge in new ship orders by industry players risks repeating the long-standing cyclical pattern of the shipping industry. However, some executives believe that countries reshaping supply chains based on energy security considerations will help support freight rates and mitigate the decline.

● Other Countries and Organizations

Gulf states Bahrain and Kuwait were hit by Iranian missile attacks, with loud explosions and air raid sirens heard within their borders. Both countries condemned the act as "blatant aggression" and a dangerous escalation. Although US forces intercepted most of the missiles, one mother told AFP that her two children were terrified, saying "I couldn't calm them down."

According to the latest data from the Lebanese Ministry of Health, Israeli attacks in Lebanon since March 2 have killed at least 3,593 people and injured 10,990.

Despite a new ceasefire agreement reached between the two governments under US mediation, the conflict has not subsided. Looking back at the war, it originated on March 2 when Hezbollah, in retaliation for the joint US-Israeli killing of former Iranian Supreme Leader Khamenei, dragged Lebanon into the conflict, which remains unresolved.

This Iran-backed group, not having participated in the ceasefire agreement, has vowed not to recognize the truce as long as Israeli forces remain in Lebanon. Israel, for its part, emphasizes that its military operations aim to destroy Hezbollah's strongholds within Lebanon. (Editor: Cai Jiamin) 1150607