Al-Bassam: Kuwait's compensation bill stands at $50 billion... Iran will pay it
Attacks warrant international sanctions under Chapter VII
Accurately and reliably documenting damages and losses, and preparing a comprehensive file based on international law mechanisms
By Najiha Bilal
Amid the continued, systematic Iranian attacks targeting vital Kuwaiti oil facilities, which have resulted in severe damage to infrastructure, public and private property, and service facilities in Kuwait and other Gulf Cooperation Council (GCC) states, Dr. Sadiq Al-Bassam, Head of the Department of Administrative Sciences and Economic Expert, stated in a special interview with "Al-Siyasa" that the Iranian regime’s continuous hostile behavior will inevitably expose it to strict international economic sanctions under Chapter VII of the UN Charter.
He noted that this scenario recalls the stringent measures imposed on the Iraqi regime during its invasion of Kuwait in 1990, paving the way for the formation of UN committees to compensate victims and obligate Tehran to cover the full costs.
Dr. Al-Bassam estimated that the initial bill for compensating Kuwait for losses to its oil sector alone would be no less than $50 billion USD as a minimum preliminary assessment.
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He clarified that this amount is designated to cover severe damages and direct and indirect economic losses to Kuwait’s energy sector, including production stoppages, reconstruction costs, and environmental impacts resulting from the attacks.
He added that if the scope of damage assessment expands to include all vital facilities, service infrastructure, public and private property destroyed in Kuwait, the total compensation value would surge past the $100 billion mark.
Dr. Al-Bassam emphasized that Iran’s targeting of oil facilities in the Gulf is not merely an attack on the sovereignty of GCC states, but a direct threat to global energy security and the lifeline of the international economy, particularly maritime navigation routes in the waters of the Arabian Gulf.
Dr. Al-Bassam detailed the catastrophic economic and political repercussions of placing the Iranian file under Chapter VII, confirming that these would include: mandatory trade sanctions, such as imposing severe economic and commercial measures that paralyze the regime’s trade movements; a comprehensive arms embargo through tightening international restrictions on preventing the supply or export of weapons to and from Iran; and complete banking isolation by cutting off the Iranian banking system entirely from the global financial system. Additionally, sanctions would impose international financial trusteeship and fully freeze Iranian assets and reserves abroad.
Regarding the compensation mechanism, Dr. Al-Bassam stated it would be achieved by deducting direct percentages from future Iranian oil sales revenues (if sales are permitted) in favor of a UN-supervised international compensation fund, similar to the UN Compensation Commission established after the Kuwait Liberation War.
Dr. Al-Bassam concluded his statement by noting that the Gulf position today rests on a solid political and diplomatic foundation, with major powers and the entire international community standing in support of Kuwaiti and Gulf rights. He explained that this broad international support stems from growing global discontent with Iran’s reckless actions, as these attacks no longer threaten only the security and stability of GCC states, but have become a direct threat to the safety of international maritime navigation routes and the stability of global energy supplies and markets. This grants the Gulf file decisive legal and political weight in all international forums to secure its rights and punish the aggressor.
On the same level, an economic source and oil analyst, in a special statement to “Al-Siyasah,” indicated that Iran will be legally obligated to pay substantial compensation to the Gulf Cooperation Council (GCC) countries, amounting to hundreds of billions of dollars, particularly since the extent of the damage is not limited to the harm suffered by the Kuwaiti and Gulf oil sector, but extends to direct destruction and impact on infrastructure, public and private utilities, and properties in GCC states.
Regarding the list of economic damages documented, he stated that it includes the energy sector due to severe damage to production facilities and refineries, as well as power generation and water desalination plants, which hinder production and export operations.
He called for the necessity of compensating for economic damages, as well as operational and supply losses resulting from the suspension or disruption of maritime tanker movements, in addition to the rise in shipping and marine insurance costs for vessels in the region.
He said that the list of claims would include losses resulting from the suspension of flight operations and the impact on tourism and hotel sectors, emphasizing the importance of accurately and thoroughly documenting damages and losses in a comprehensive file based on international law mechanisms to ensure Iran is held liable for paying the necessary compensation to redress this harm. He stressed that documenting this file is a crucial step, as it constitutes the legal foundation for safeguarding the rights of affected states and preserving their assets, thereby transforming losses from burdens borne by state budgets into a clear legal responsibility falling on the aggressor party, in accordance with international conventions.
