• Iran’s Foreign Ministry spokesperson says the US has agreed to release frozen assets, but US officials insist no money will be handed over.
  • Negotiations remain deadlocked over the size and timing of any fund release, with Iran demanding immediate access and the US offering only staged humanitarian disbursements.
  • The standoff underscores continuing mistrust between the two sides, with no final agreement reached as of mid-June.

Iran’s Foreign Ministry spokesperson Esmail Baghaei said on Monday that the United States will commit itself to granting Iran access to its frozen funds abroad, but US officials flatly denied any such commitment. “The US will not give Tehran any money,” a State Department spokesperson told Reuters, speaking on condition of anonymity. The conflicting statements highlight the deep divisions that remain in indirect talks aimed at de-escalating tensions.

Negotiations have intensified in recent weeks, focusing on how much of Iran’s estimated $100 billion in frozen assets could be released. Iranian officials have proposed an immediate release of at least 50% of the funds, according to people familiar with the matter. The US, however, is pushing for staged disbursements tied to verifiable humanitarian measures, such as the purchase of food and medicine. “Discussions are centered on liquidity, timelines, and a formal framework—not outright restitution of all funds,” a regional diplomat briefed on the talks said.

The core economic question is how sanctions relief translates into usable liquidity for Iran without undermining US policy objectives. Any partial release could ripple through global oil markets and Islamic finance compliance, as international banks weigh risk premia. “The market is watching for signals on correspondent banking flows in the Gulf,” said a senior analyst at a Dubai-based consultancy. “Even a modest interim deal would shift liquidity dynamics.”

Iran’s public debt and humanitarian import needs are frequently cited as drivers for partial relief. Humanitarian groups have advocated for timely, unconditional access to funds for essential imports. Critics, however, warn of sanctions circumvention. Public debate in Iran remains divided, with hardliners opposing any concession and moderates welcoming even limited relief.

A hypothetical interim plan, mirroring patterns reported by Reuters, could release $6–12 billion initially for humanitarian imports, with the remainder disbursed over one to two months contingent on verification and no new sanctions. Broader policy talks would follow. But without a deal, Iran would continue to face severe financial friction.

Attempts to reach Baghaei for further comment were unsuccessful. The US State Department declined to elaborate beyond its denial.

Correction: An earlier version of this article misstated the amount of Iran’s frozen assets. The correct estimate is approximately $100 billion.