Following Iran's insistence on the release of half of its frozen funds abroad upon the signing of a potential peace agreement with the United States, tensions between the two sides have escalated significantly, with Iranian and American forces exchanging strikes over the past few hours.
اضافة اعلان
The timing of this military escalation appeared striking, particularly as it came after the Iranian side demanded the release of at least 50% of its frozen assets abroad upon reaching a potential memorandum of understanding (MoU) with the United States.
The Frozen Funds Knot
Iran's Deputy Foreign Minister for Legal Affairs, Kazem Gharibabadi, said on Friday: "This is our own money... It is not money from Western countries or America for us to need to negotiate for aid or grants."
He added that "the United States has illegally blocked these funds in the countries where those accounts are held, refusing to allow them to be spent or made available to Tehran." Gharibabadi emphasized the necessity of releasing these assets immediately upon the signing of any MoU, with the remaining amount to be released within two months.
For his part, Iranian General Mohsen Rezaei, a senior military advisor to Supreme Leader Mojtaba Khamenei, considered that "$24 billion is not a large amount for America if it wants to reach an agreement... This is our money, not theirs."
$12 Billion
Iran is demanding approximately $12 billion upfront and $24 billion during a 60-day negotiation period starting after the initial agreement.
Meanwhile, Washington refuses to provide any funds upfront or commit to specific amounts. It also rejects broader sanctions relief, such as allowing Iran to export oil without restrictions.
U.S. officials emphasized that any sanctions relief or release of funds will not occur before Tehran takes clear steps to restrict its nuclear program and hand over its stockpile of enriched uranium.
Furthermore, some U.S. officials fear that granting the funds would allow Iran to reinforce its defenses and increase its support for its regional militia network, including Hamas and Hezbollah.
This is particularly sensitive given that the decision by former U.S. President Barack Obama’s administration to transfer $400 million in cash to Tehran, as part of a total payment of $1.7 billion following the implementation of the 2015 nuclear deal, had caused significant political embarrassment.
Around $100 Billion
It is worth noting that Iran is estimated to have around $100 billion in assets frozen due to U.S. sanctions, mostly consisting of oil revenues and financial reserves. According to The Wall Street Journal, their release would provide a major boost to the economy, even if it falls short of the benefits that a comprehensive lifting of sanctions would bring.
These assets consist of various types of funds subject to multiple sanctions regimes, the majority of which are located outside Iran, especially in China, where they are difficult to transfer due to restrictions imposed on the Iranian banking system.
There are also funds designated for specific purposes, such as $6 billion in Qatar for purchasing humanitarian goods, about $1 billion in the Sultanate of Oman, and approximately $15 billion in Iraqi banks resulting from energy exports.
The United States and Israel had carried out a joint military operation against Iran on February 28, to which Tehran responded by launching missile attacks targeting Israel and several countries in the region. On April 8, U.S. President Donald Trump announced a two-week ceasefire with Iran to allow room for negotiations aimed at reaching an agreement to end the crisis, before it was extended "until Tehran presents its proposals," without specifying a definitive timeframe.
While Islamabad hosted a round of direct talks between the United States and Iran on April 11, it did not yield any results.
Meanwhile, the second round of talks, which was scheduled to take place between the two sides, has not yet been held amid ongoing diplomatic efforts.
— Al Arabiya Net
