• Iran's top diplomat, Abbas Baghaei, claims the US has committed to granting Tehran access to its frozen funds.
  • The US denies providing any money, instead signaling staged releases for humanitarian purposes.
  • The dispute over asset access remains a key sticking point in ongoing negotiations for an interim deal.

Stalemate Over Frozen Assets

Iran's lead negotiator, Abbas Baghaei, said on Thursday that the United States has committed to giving Iran access to its frozen funds, according to state media. “The US will commit itself to give Iran access to its frozen funds,” Baghaei stated following closed-door talks in Geneva. However, a US official, speaking on condition of anonymity, pushed back, saying, “The US will not give Tehran any money.” The contradictory statements highlight the fragility of negotiations aimed at de-escalating tensions between the two countries.

Staged Releases vs. Immediate Access

At the heart of the dispute is how much of Iran’s estimated $6 billion in frozen assets—held in South Korea, Iraq, and other countries—should be unfrozen. Tehran has pressed for immediate access to half the funds upon signing a deal, with the remainder within months, to bolster its struggling economy. In contrast, the US has proposed releasing funds in staged rounds, conditioned on verifiable steps by Iran to curb its nuclear program and regional activities. “We’re talking about humanitarian channels, not a cash dump,” a senior State Department official explained, emphasizing that any releases would be for food and medicine.

The ambiguity has fueled market uncertainty. The Iranian rial weakened slightly on Friday, while oil prices held steady as traders awaited clarity. “Without a deal, Iran’s liquidity crunch will deepen, but a staged release could stabilise the economy without triggering a broader sanctions relief,” said an economist at a Gulf-based research firm.

Negotiation Dynamics

The talks, brokered by Oman and Qatar, are part of broader efforts to reach an interim agreement that would ease hostilities in exchange for limits on Iran’s nuclear enrichment. Baghaei’s remarks appear aimed at domestic audiences, where pressure for tangible economic relief is mounting. “The public expects results,” a political analyst in Tehran noted. “Baghaei must show progress.”

Reached for comment, a spokesperson for the Iranian mission to the UN directed queries to Baghaei’s office, which did not respond. The US State Department declined to elaborate beyond its denial.

Correction: An earlier version of this article misstated the amount of frozen funds. The correct figure is approximately $6 billion, not $10 billion. This version has been corrected.