New Delhi:
Iran’s frozen assets worth $12 billion remain a point of contention even as the world celebrates a peace deal between the US and Tehran, which is scheduled to be signed on Friday in Geneva.
Iran’s Mehr news agency quoted the 14-point memorandum of understanding to state that the US has agreed to release the frozen assets before the start of negotiations, which focus on key issues including Tehran’s nuclear programme.
The document published by Mehr stipulates “the release of 24 billion dollars in frozen Iranian assets during the 60-day negotiation period” that begins after the memorandum of understanding is concluded. “Half of this amount must be made available to Iran before the start of the negotiations,” the text, which has not been officially confirmed, specifies.
The US was quick to turn the claim on its head, with an official telling Axios that no frozen funds will be released without Iran implementing its commitments. “This is a pay-for-performance deal,” the senior US official stated.
US President Donald Trump announced on Saturday that a peace deal with Iran was agreed upon, which would see the critical marine chokepoint Strait of Hormuz opening months after the war brought movement to a near halt.
Iranian Deputy Foreign Minister Kazem Gharibabadi was quoted as saying by Tasnim news agency that negotiations for a final deal will be held during a 60-day period, depending on Washington coming through on its commitments, including ending hostilities, lifting the blockade, and releasing frozen assets. The deal also included a cease of hostilities in Lebanon, per Iranian media reports.
Iran’s frozen assets were earlier brought up by the US, when Treasury Secretary Scott Bessent said they may be used to financially compensate Washington’s Gulf allies for any damage incurred during future hostilities by Tehran. Last week, Iran’s foreign minister Abbas Araghchi said if Iranian assets are used to make payments to other countries, it is a violation of the agreement.
The deal was welcomed by the world, with UK, Germany, Italy and France among the earliest to respond with the readiness to lift sanctions on Iran if the country takes clear, verifiable steps.
Israel, which has insisted it be allowed a freehand to pursue Hezbollah as it occupies southern Lebanon and has extended its military operations into areas its forces haven’t been in a quarter century, did not immediately comment.
The deal hopes to bring peace to the region where a shaky ceasefire has been interrupted periodically by tit-for-tat attacks. This has directly and severely impacted the global energy and stock markets, sending the prices of commodities soaring.
