WASHINGTON/DUBAI: The United States said it shot down two more Iranian attack drones threatening maritime traffic in the Strait of Hormuz, as tensions escalated across the Gulf region amid ongoing strikes and fragile ceasefire efforts, according to officials and a source familiar with the matter.
Drone Interceptions and Asset Proposal
The drone interceptions came as Washington also considers a proposal to redirect Iranian assets toward rebuilding Gulf states damaged in the conflict with Iran, the source said. US officials, according to the source, are examining potential mechanisms to assess and recover costs for damage already sustained by allies in the region, including possible use of Iranian funds for future reconstruction efforts.
The latest escalation follows weeks of cross-border strikes involving Iran and US forces, alongside regional spillovers affecting Kuwait, Bahrain and maritime routes critical to global energy flows.
US Evaluates Iranian Assets for Reconstruction
The US Treasury Department, led by Secretary Scott Bessent, has reportedly directed a team to estimate the financial cost of damages incurred by Gulf partners, the source said. The review includes consideration of whether Iranian assets, frozen or otherwise restricted, could be redirected to finance reconstruction in affected states. The proposal, however, risks further straining already fragile diplomatic channels between Washington and Tehran. Iran has previously demanded access to billions of dollars in frozen assets and sanctions relief as part of broader negotiations aimed at ending the conflict.
Regional Strikes Intensify Across Gulf States
Earlier, Iran launched missiles and drones targeting Kuwait and Bahrain, prompting defensive responses from both countries. Kuwait said it intercepted multiple ballistic missiles, while Bahrain issued shelter warnings after air raid sirens sounded. Iran’s Revolutionary Guard claimed retaliatory strikes on US bases, while Washington said most incoming missiles were intercepted.
Diplomatic Efforts Continue
Despite ongoing hostilities, indirect diplomatic channels remain active. Pakistan’s Interior Minister, Mohsin Naqvi, visited Tehran on Saturday carrying a letter for Iran’s Supreme Leader, according to Iranian media, as Islamabad continues to play a mediating role. However, negotiations between Washington and Tehran have stalled, with both sides continuing periodic military exchanges alongside diplomatic signalling. The conflict has already disrupted global oil flows, pushed up energy prices, and raised concerns over broader regional stability, even as limited ceasefire arrangements in other theatres remain under strain. The coming days will be critical in determining whether diplomatic efforts can de-escalate the situation or whether further military action will follow. The international community continues to urge restraint on all sides. The use of Iranian assets for reconstruction, while potentially a creative solution, is likely to be fiercely opposed by Tehran. The proposal adds another layer of complexity to already challenging negotiations. The path to peace remains elusive, but diplomatic channels, however fragile, are still open. The world watches with concern as the region teeters on the edge of a wider conflict. The need for a diplomatic breakthrough has never been more urgent. The efforts of countries like Pakistan to mediate are commendable and should be supported. The alternative is a devastating regional war that would have catastrophic consequences for global energy supplies and international security. The time for dialogue is now. The leaders must act with wisdom and restraint. The future of the region hangs in the balance. The hope for peace must not be abandoned. The international community must intensify its efforts to bring the parties to the negotiating table. The cost of inaction is too high. The lives and livelihoods of millions are at stake. The world must not fail them. The path to peace is difficult, but it is the only path worth taking. The leaders must have the courage to take it. The hope for a better future depends on their choices. The world is watching and hoping. The time for peace is now.
