Iran has made the release of $24 billion in frozen assets a precondition for signing a peace agreement with the United States, according to statements from Tehran’s chief negotiator Mohammad Bagher Ghalibaf and Foreign Minister Abbas Araghchi. The officials conveyed this demand during meetings in Doha with Qatari interlocutors, outlining that the Islamic Republic would not progress with any deal until half of the funds—approximately $12 billion—are transferred immediately upon announcement of the memorandum of understanding, with the remainder to be released over the subsequent 60 days.
An Iranian official involved in the negotiations emphasized that the frozen assets must be made available “right now,” asserting that meaningful dialogue cannot proceed without these funds being deposited. The frozen assets primarily consist of revenues from oil and gas sales that have been held in foreign banks due to international sanctions and US Treasury restrictions implemented over recent years. The total amount of Iranian assets blocked abroad is estimated to exceed $100 billion, with significant sums held in countries including South Korea, Qatar, Iraq, Japan, Luxembourg, Bahrain, Turkey, and Germany.
Washington faces considerable challenges in meeting Tehran’s demand, as releasing these funds may require sanction waivers, coordination with various foreign governments, and the establishment of a mechanism to prevent Iran from using the money to advance its nuclear program or support proxy groups. Gulf sources have referenced ongoing discussions about a “complex mechanism” designed to restrict direct funding to the regime.
The proposals have elicited skepticism and concern within the US political sphere. Some advisers and allies within former President Donald Trump’s base view the release of billions in frozen assets before a final agreement as effectively rewarding Iran, a regime they attribute to instigating regional tensions, including threats to close the Strait of Hormuz. A source close to Trump described the idea as politically unviable, while a prominent MAGA figure suggested reconsidering negotiation strategies.
The frozen assets remain the primary obstacle in negotiations that aim to resolve a wider standoff following a 40-day conflict involving Iran and US forces. According to Iranian sources, progress on a 14-point memorandum of understanding facilitated by Pakistani and Qatari mediators hinges on addressing this financial issue. Past attempts saw Washington agree in principle to partial asset releases but subsequently withdraw amid disagreement over implementation details, fueling Iranian distrust.
The tensions were underscored recently when US forces in the Strait of Hormuz fired upon Islamic Revolutionary Guard Corps (IRGC) boats allegedly laying sea mines near Bandar Abbas. The US Central Command described its actions as defensive measures to protect American personnel and preserve navigation freedoms. Iran’s IRGC rejected this characterization, labeling the US strikes a violation of the ceasefire and asserting Tehran’s right to retaliate.
Meanwhile, global oil prices reacted to the ongoing uncertainty, with prices rebounding to $100 per barrel. President Trump is expected to convene his cabinet at Camp David to discuss the evolving situation. Former National Security Adviser John Bolton suggested Trump may be more open to concessions behind the scenes than publicly acknowledged, characterizing him as “palpably desperate” to reach a settlement.