US to Unfreeze $12 Billion in Iranian Assets Following Peace Deal
Iran’s frozen assets, valued at USD 12 billion, remain a significant point of dispute despite the global acknowledgement of a peace agreement between the US and Tehran, set to be formalised on Friday in Geneva. According to Iran’s news agency, referencing a 14-point memorandum of understanding, the US has consented to release the frozen assets prior to the commencement of negotiations, which center on critical matters including Tehran’s nuclear programme. The document published by Mehr states “the release of 24 billion dollars in frozen Iranian assets during the 60-day negotiation period” that commences following the conclusion of the memorandum of understanding. Furthermore, the text, which remains unverified, indicates that “half of this amount must be made available to Iran before the start of the negotiations.”
However, the US swiftly countered the claim, with an official informing that no frozen funds will be released until Iran fulfils its commitments. The senior US official stated, “This is a pay-for-performance deal.” This diplomatic friction follows an announcement by US President Donald Trump on Saturday, who confirmed that a peace deal with Iran had been agreed upon and would see the critical marine chokepoint, the Strait of Hormuz, reopening months after the war brought movement to a near halt. White smoke ascended from the White House, indicating that a consensus had been achieved. From Tehran’s viewpoint, Iranian Deputy Foreign Minister Kazem Gharibabadi stated through the Tasnim news agency that discussions for a conclusive agreement will take place over a 60-day timeframe, contingent upon Washington fulfilling its obligations, which include ceasing hostilities, removing the blockade, and unfreezing assets.
Reports indicated that the agreement also encompassed a ceasefire in Lebanon. The contention surrounding these funds is not a recent development. Iran’s frozen assets were previously mentioned by the US when Treasury Secretary Scott Bessent indicated that they could potentially be utilised to financially compensate Washington’s Gulf allies for any damages sustained during future hostilities involving Tehran. This prompted a strong reaction last week from Iran’s Foreign Minister Abbas Araghchi, who stated that utilising Iranian assets to settle payments to other nations constitutes a breach of the agreement. Despite the ongoing disagreement over financial matters, the broader pact has garnered significant praise, with the UK, Germany, Italy, and France being among the first to express their willingness to lift sanctions on Iran, contingent upon the country taking clear and verifiable actions.
In contrast, Israel has maintained its position for a free hand to engage Hezbollah while occupying southern Lebanon and expanding its military operations into regions where its forces have been absent for a quarter century. The country did not provide an immediate comment. Ultimately, the agreement aims to establish stability in the area, where a fragile ceasefire has been intermittently disrupted by reciprocal assaults. This has directly and severely impacted the global energy and stock markets, sending commodity prices soaring.
