US to Release Billions in Iranian Funds Held Abroad – Reports

(SeaPRwire) –   Assets previously blocked through various methods by Washington are reportedly valued at over $100 billion

According to a Reuters report on Saturday citing a senior Iranian source, Washington has consented to unfreeze Iranian assets held in Qatar and other foreign locations. This action is viewed as an indication of “seriousness” in securing an agreement between the US and the Islamic Republic. Negotiators from both nations have traveled to Pakistan for discussions.

High-level delegations from Iran and the US reached Islamabad on Saturday to proceed with talks on a suggested peace framework. While certain aspects of the plan have been reported in the media, neither side has provided official details.

An unnamed official informed the news agency that releasing the assets is “directly linked to ensuring safe passage through the Strait of Hormuz”, a central topic in the negotiations. The initial source did not reveal the sum involved, but a second Iranian official stated the US was prepared to release $6 billion held in Qatar.

In contrast, CBS News reported, citing a senior US official, that the White House has not agreed to authorize the release of the funds.

The precise total of Iran’s frozen assets is not known, although some estimates place the amount above $100 billion. This encompasses funds frozen directly within the US, assets restricted overseas, oil revenues held in escrow, and central bank reserves blocked as a result of US secondary sanctions.

The $6 billion currently in Qatar was moved there in September 2023 as part of a US-Iran prisoner exchange facilitated by Doha, which involved the release of five Americans detained in Iran and five Iranians held in the US. Washington stated the funds were restricted to humanitarian purposes, with payments made exclusively to approved vendors under the oversight of the US Treasury.

However, after the October 7, 2023, attacks on Israel by Hamas, an Iranian ally, the administration of then-President Joe Biden froze the funds again. It stated that Iran would be unable to access the money for the foreseeable future and that Washington maintained the authority to completely block the account.

These funds, first frozen in 2018, originate from Iranian oil sales to South Korea and were held in South Korean banks after President Donald Trump reimposed sanctions on Iran and exited the nuclear deal during his initial term.