US, Qatar explore release of $6 billion in frozen Iranian funds, claims report
The U.S. is coordinating with Qatar on a plan that could unlock billions of dollars in frozen Iranian assets for use in humanitarian needs, according
The U.S. is coordinating with Qatar on a plan that could unlock billions of dollars in frozen Iranian assets for use in humanitarian needs, according to people familiar with the matter. The move is being described as an early financial component of a recently reached agreement aimed at ending the conflict, as reported by Wall Street Journal. The plan, which isn’t yet completed, is aimed at giving Iran access to the spending power of some of its estimated $100 billion in cash frozen worldwide, beginning with $6 billion held in Qatar. Under the deal, Qatar would allow purchases of food, medicine and other humanitarian goods ordered by Iran’s central bank with money drawn from frozen Iranian assets, mainly cash from oil sales that has been locked up overseas by sanctions, the people said, as reported by WSJ. The facility could provide a template for dealing with other pools of frozen Iranian cash around the world and a start on the first tranche of the $24 billion in blocked funds that Tehran wants released as soon as possible, some of the people said. Iran still needs to agree to the mechanism. It is one of many ideas Washington is expected to raise over the next two months of nuclear discussions with Tehran following a deal to pause the war and reopen the Strait of Hormuz, the people said.
“Even limited asset releases function as both economic lifelines and political signals of de-escalation,” said Sanam Vakil, Middle East director at Chatham House, a London think tank, as reported by the Wall Street Journal. “They are one of the few concrete incentives Iran can secure with Washington to stabilize its currency and ease domestic economic pressure.” However, the situation remains uncertain, as Iranian Supreme Leader Mojtaba Khamenei stated on X on Thursday that U.S. President Donald Trump agreed to suspend hostilities “out of desperation,” suggesting that the decision reflected pressure rather than goodwill. This appeared to prompt Trump to hit back with his own social-media post: “We didn’t meet out of desperation, Iran did. They are FINISHED! We’ll play out the 60 days. They get no money, not ten cents!” Under the deal signed Wednesday by Trump, the U.S. is committed to making Iran’s frozen assets “fully available for use” and negotiating a mechanism for doing so. A U.S. official said this week the funds will flow as long as Iran is engaging productively in talks. The arrangement with Qatar would be in addition to the billions of dollars Iran is expected to earn from oil sales, which Washington agreed to allow immediately upon signing the agreement on Wednesday.
The BriefWire