US-Iran peace deal hinges on frozen assets debate- Is it $12 billion or $24 billion?
The United States and Iran reached a preliminary agreement on Monday aimed at extending their fragile ceasefire and reopening the Strait of Hormuz, although major
The United States and Iran reached a preliminary agreement on Monday aimed at extending their fragile ceasefire and reopening the Strait of Hormuz, although major issues remain unresolved, including the possibility of continued Israeli military action in Lebanon. No detailed terms of the deal were immediately made public, but it is expected to take effect only after formal signing. According to the mediator, Pakistan, the agreement is scheduled to be signed on Friday in Geneva. Until then, restrictions on shipping are likely to remain in place in the strait, a vital route for global oil and gas supplies whose closure has contributed to an international energy crisis. Quick answers to key questions • 5 QUESTIONS 1 What is the amount of frozen Iranian assets to be released under the US-Iran peace deal? ⌵ The US will initially release $12 billion in frozen Iranian assets before formal negotiations begin, with an additional $24 billion to be unfrozen during the subsequent 60-day negotiation period. 2 Why is the reopening of the Strait of Hormuz significant in the US-Iran agreement? ⌵ The Strait of Hormuz is a vital route for global oil and gas supplies, and its reopening is expected to alleviate pressures contributing to the international energy crisis.
3 How does the US-Iran peace deal address the issue of sanctions? ⌵ The deal includes commitments from the US not to impose new sanctions during negotiations, as well as plans for lifting existing sanctions on Iran once a final agreement is reached. 4 What are the main unresolved issues in the US-Iran peace negotiations? ⌵ Key unresolved issues include details regarding Iran's nuclear program, inspection mechanisms, and the management of Iranian military capabilities, particularly ballistic missiles. 5 Should Iran expect any immediate financial benefits from the US-Iran peace deal? ⌵ Yes, Iran is expected to receive initial access to $12 billion in frozen assets right before negotiations begin, aiming to provide economic relief amidst ongoing discussions. Iran’s Mehr news agency reported that the United States will release $12 billion in frozen Iranian assets ahead of the start of negotiations under the newly announced US–Iran agreement. Citing a 14-point memorandum of understanding between the two countries, the agency said the remaining $24 billion in blocked assets would be unfrozen over the 60-day negotiation period that begins after the MoU is signed.
The agreement is expected to be formally signed at a ceremony in Switzerland on Friday. “Half of this amount must be made available to Iran before the start of the negotiations,” the text, which has not been officially confirmed, specifies. Sanctions and financial impact The senior Iranian official told Reuters that the U.S. had agreed not to impose any new sanctions on Iran until a final deal was reached. They added the U.S. would waive oil sanctions on Iran for a specified period and that after the final agreement all US and UN sanctions would be lifted to an agreed timetable. Reuters reported that the senior Iranian official said the U.S. had agreed to release $25 billion of Iran's frozen assets, including via direct cash transfers, cooperation among regional countries, and financial credit lines. Washington, in coordination with its regional allies, would prepare a reconstruction and development plan for Iran, to be negotiated and agreed with Tehran within 60 days, they added, as reported by Reuters. Trump said Iran would not be provided with cash but that sanctions could potentially be lifted.
The BriefWire