Iran Can Buy US Goods From $6-Billion Of Frozen Funds Under Interim Deal: Report

Under an interim agreement between Tehran and Washington, the Donald Trump-led administration will permit Iran to purchase humanitarian and non-sanctioned products from the United States using $6 billion of its frozen funds held in Qatar, the Financial Times reported, citing sources.

The action is a component of the billions of dollars in financial incentives the administration is offering to follow up on nuclear negotiations and guarantee the Islamic Republic’s commitment to the memorandum of understanding it signed with the United States on Wednesday, the publication added. 

Depending on the reopening of the Strait of Hormuz and the advancement of negotiations for a final solution, the money would be released in stages beginning during the 60-day extended truce specified in the agreement.

A diplomat briefed on the agreement stated that they would only be used to purchase American goods, the report said.

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A US official reportedly stated that Washington would release some blocked assets during the final discussions if Iran exhibited “good behavior,” such as turning over its enriched uranium.

Additionally, the Trump administration will relax its naval blockade of Iranian ports and provide a waiver to permit Iran to export oil during the 60-day term.

Due to US sanctions, tens of billions of dollars of Iran’s oil money are thought to be frozen in central banks abroad, including those in China, Japan, India, and Iraq.

Tehran anticipates the release of $12 billion during the 60-day interim period, according to Iranian state-affiliated media.

After the Biden administration reached a prisoner-swap agreement with Tehran in September 2023, the $6 billion that had been stored in South Korea was moved to an account in Doha.

Iran was denied access to the funds following Hamas’s October 7, 2023 attack on Israel, which heightened tensions in the area. The earlier arrangement was meant to be a step toward boosting confidence following the breakdown of nuclear negotiations.

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In defense of the most recent terms, President Donald Trump now claims that the funds belong to Iran and that returning them under stricter guidelines benefits both American manufacturers and humanitarian trade.

Some Republicans and other Trump detractors are already criticising the temporary agreement, claiming Washington is making too many concessions to Tehran. The conflict arises at a time when Iran’s blockade of the Strait of Hormuz, a route that once carried roughly a fifth of the world’s flows of oil and liquefied natural gas, causes a serious global energy crisis and raises the stakes for any compromise in the market.

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