US agrees to unfreeze Iranian assets to advance Islamabad talks, report says
US official has denied reports that Washington has agreed to unfreeze Iranian assets.
A senior Iranian source said 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.
Qatar's Foreign Ministry did not immediately respond to a request for comment.
US denies unfreezing assets
A US official on Saturday denied reports that Washington has agreed to unfreeze Iranian assets.
The $6 billion, originally frozen in 2018, was due to be released in 2023 as part of a US-Iranian prisoner swap, but was refrozen by the administration of President Joe Biden following the October 7, 2023 Hamas attack on Israel and Tel Aviv’s genocidal war in Gaza.
US 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.
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 US–Iran prisoner swap mediated by Doha, the money was transferred to Qatari bank accounts. The prisoner swap involved the release of five US citizens detained in Iran in exchange for the release of the funds and the release of five Iranians held in the United States.
US 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 US Treasury oversight.