Iran rejected a proposal to use its sovereign assets to pay damages claimed by U.S. allies for attacks on their territory [1].
This refusal signals a deepening diplomatic rift and a refusal to concede financial leverage during ongoing tensions with the U.S. and its regional partners. By blocking the use of these funds, Tehran maintains control over its remaining overseas wealth while challenging the legal standing of the claimants.
Deputy Foreign Minister Kazem Gharibabadi announced the decision during a press briefing in Tehran on June 7 [1, 2]. He said that the idea of using Iranian assets for such payments is unacceptable to the government [1, 3].
"Regional governments are not in a position to demand reparations," Gharibabadi said [1].
The deputy foreign minister clarified the government's stance regarding the nature of these assets. He said that the funds represent the sovereign wealth of the nation and should not be treated as negotiable currency in geopolitical disputes [3].
"We reject any suggestion that Iran's assets be used to pay damages to U.S. allies," Gharibabadi said [2].
The Iranian government maintains that the demands for compensation are unfounded. Gharibabadi said that Iran will not allow its sovereign wealth to be used as a bargaining chip against its own interests [3].
This stance follows a series of disputes over the legality of frozen assets and the right of third-party nations to claim those funds as reparations for military or economic damages [1, 2].
“"Regional governments are not in a position to demand reparations,"”
The rejection of these payments indicates that Iran is unwilling to acknowledge legal or financial liability for regional conflicts. By framing sovereign assets as non-negotiable, Tehran is attempting to protect its financial reserves from being seized or redirected by international courts or U.S.-led initiatives, effectively closing a potential diplomatic avenue for financial restitution.
