Big Win For Iran Before JD Vance-Led Talks Begin In Pakistan: Tehran Secures $6 Billion Breakthrough, US To Release Iranian Frozen Funds
Iran has secured a big win even before the talks start with the US delegation led by Vice President JD Vance in Pakistan. A senior Iranian source told Reuters on Saturday the US had agreed to release Iranian frozen assets held in Qatar and other foreign banks, welcoming the move as a sign of “seriousness” in reaching a deal with Washington in talks in Islamabad. The source, who declined to be named due to the sensitivity of the matter, told Reuters that unfreezing the assets was “directly linked to ensuring safe passage through the Strait of Hormuz”, which is expected to be a key issue in the talks.
The senior source did not give a value for the assets that Washington had agreed to unfreeze. A second Iranian source said the United States had agreed to release $6 billion of frozen Iranian funds held by Qatar.
There was no immediate statement from the United States about any unfreezing of assets. Qatar’s Foreign Ministry did not immediately respond to a request for comment.
However, Reuters later reported that the US officials have denied the Iranian claims.
What Are The Iranian Assets Frozen By US?
The $6 billion, originally frozen in 2018, had been due for release in 2023 as part of a U.S.-Iranian prisoner swap but the funds were again frozen by the administration of President Joe Biden following the October 7, 2023 attacks on Israel by Iran’s ally, the Palestinian militant group Hamas.
U.S. officials said at the time that Iran would not be able to access the money for the foreseeable future, stressing that Washington retained the right to completely freeze the account.
How US Sanctions On Iran Crippled Iranian Funds, Assets
The funds stem from Iranian oil sales to South Korea and had been blocked in South Korean banks after President Donald Trump reimposed sanctions on Iran in 2018 – during his first term in the White House – and scrapped a deal between world powers and Tehran over its nuclear programme.
Under the September 2023 U.S.–Iran prisoner swap mediated by Doha, the money was transferred to Qatari bank accounts. The prisoner swap involved the release of five U.S. citizens detained in Iran in exchange for the funds’ release and the release of five Iranians held in the United States. U.S. officials said at that time that the money was restricted to humanitarian use only, to be disbursed to approved vendors for food, medicine, medical equipment and agricultural goods shipped into Iran under U.S. Treasury oversight.
(With inputs from Reuters)
Also Read: Iranian Delegation Arrives In Pakistan For High-Stakes Peace Talks With US; Who’s Part Of The Team?
Zubair Amin is a Senior Journalist at NewsX with over seven years of experience in reporting and editorial work. He has written for leading national and international publications, including Foreign Policy Magazine, Al Jazeera, The Economic Times, The Indian Express, The Wire, Article 14, Mongabay, News9, among others. His primary focus is on international affairs, with a strong interest in US politics and policy. He also writes on West Asia, Indian polity, and constitutional issues. Zubair tweets at zubaiyr.amin
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