The Trump administration has asserted that a recently reached interim agreement with Iran will provide economic benefits to American farmers by enabling the use of previously frozen Iranian assets for agricultural purchases in the United States. The tentative deal, announced last week, aims to end hostilities between the two countries and includes the reopening of the Strait of Hormuz, a critical global oil transit route, allowing Iran to resume oil exports for a 60-day period during ongoing negotiations.
President Donald Trump and Vice President JD Vance have emphasized that funds released from escrow accounts, where Iranian assets have been held under U.S. sanctions, will be directed toward buying U.S.-made food and medical supplies, including corn, wheat, and soybeans. Trump stated on his social media platform that the U.S. Treasury Department will oversee the release of these funds with the intention of benefiting American farmers. Vance echoed this view after high-level discussions in Switzerland, asserting that unfrozen Iranian funds held outside the country would support U.S. agricultural exports.
However, Iranian officials have rejected claims that Tehran would be compelled to purchase exclusively from the U.S. Iranian Foreign Ministry spokesperson Esmail Baghaei stressed that any agricultural imports would be based on "prices and quality," not dictated by Washington. Iran’s ambassador to Geneva, Ali Bahreini, further dismissed suggestions that the U.S. or Qatar would control the use of the released assets, affirming that decisions about the funds rest solely with Iran.
Sanctions experts and analysts have expressed uncertainty about the mechanism for transferring billions of dollars in Iranian assets to benefit U.S. farmers. Joseph Glauber, a research fellow emeritus at the International Food Policy Research Institute, noted that Iran maintains diverse food trade partnerships with countries including Brazil, India, Turkey, the European Union, Canada, Australia, and Argentina, making exclusive reliance on U.S. agricultural imports unlikely.
Richard Nephew, a sanctions expert at Columbia University, remarked that while the U.S. could attempt to restrict the use of frozen Iranian funds to purchases of American farm goods by instructing foreign banks to route payments accordingly, such measures depend on compliance by international financial institutions and are rarely enforced rigorously. He added that imposing strict conditions on how funds are used risks creating the perception of treating national security concerns as a financial opportunity.
The deal has also drawn criticism for not addressing key U.S. concerns cited as reasons for military engagement with Iran, including Tehran’s nuclear program, missile development, and support for militant groups in the Middle East. Meanwhile, a U.S. official, speaking anonymously, suggested Iranian officials’ denials might be aimed at domestic audiences.
On June 22, the U.S. Treasury approved the sale of Iranian oil and related products until August 21, although it did not specify details regarding escrow accounts or the disposition of Iranian assets. The administration’s approach continues to draw scrutiny among experts and critics as the situation develops.