Officials are examining whether frozen financial holdings and other Iranian assets could be used to cover reconstruction costs in Gulf countries.

Such harm could come in a number of ways. A strike on Kharg island has the clearest potential to cause a big, enormously damaging oil spill. Its oil infrastructure can store around 30m barrels. America has already struck the island’s military installations and Donald Trump has repeatedly threatened to take out oil infrastructure on Kharg.

As the conflict with Iran continues to unsettle the Middle East, the Trump administration is exploring whether frozen Iranian assets could be used to help Gulf countries repair damage caused by Tehran's military actions.

An “unprecedented” crisis is unfolding for 20,000 seafarers stranded in the Persian Gulf, a UN body has warned, as the Strait of Hormuz closure leaves crews trapped on ships with no clear way out.

The conflict is not only sapping oil revenue, but also Gulf states’ efforts to expand their economies beyond it.

Instead of portraying Gulf leaders as quietly lining up behind Israel for a confrontation with Iran, Halabi argues that Saudi Arabia, Qatar, and other regional players are using their growing influence in Washington to push President Donald Trump away from Israeli Prime Minister Benjamin Netanyahu’s war footing and toward a broader regional settlement.

Edward Carr, Economist deputy editor Josie Delap, Middle East editor Shashank Joshi, defence editor Ann Wroe, obituaries editor Rosie Blau, host of “The Intelligence” This podcast transcript is generated by third-party AI. It has not been reviewed ...

Tensions in the Gulf region have escalated dramatically following Iran's Islamic Revolutionary Guard Corps' missile strikes on perceived enemy bases, viewed as retaliation for recent US military actions.