• Iran’s lead negotiator, Abbas Baghaei, claimed the U.S. has pledged to grant Tehran access to its frozen assets, while Washington insists it will not provide any direct payment.
  • Talks remain deadlocked over the pace and conditions of fund releases, with Iran seeking immediate access and the U.S. pushing for staged, humanitarian-linked disbursements.
  • The dispute underscores fragile interim deal negotiations that could shift energy markets and sanctions-related financial flows.

Divergent Narratives on Frozen Assets

Iran’s top negotiator, Abbas Baghaei, said on Thursday that the United States has committed to allowing Tehran to tap into its frozen overseas funds, a statement immediately contradicted by U.S. officials who stressed that no money would be handed over to the Islamic Republic. “The U.S. will commit itself to give Iran access to its frozen funds,” Baghaei told reporters in New York, without providing details on the amount or timeline. A U.S. State Department spokesperson, speaking on condition of anonymity, shot back: “The United States will not give Tehran any money. Any discussions about frozen assets are about facilitating humanitarian trade under strict oversight.”

Staged Release vs. Immediate Access

The dueling statements highlight the core rift in indirect talks being mediated by European and Gulf officials. Iran has demanded a substantial upfront release of funds as a confidence-building measure, while Washington insists on a phased approach tied to verifiable steps, such as curbs on Iran’s nuclear program or regional activities. According to people familiar with the matter, negotiators have floated a potential interim deal that would unlock a portion of the assets—estimated at several billion dollars—in exchange for Iran suspending uranium enrichment above 60% purity. However, no agreement has been finalized.

“Any deal is going to be fragile and reversible,” said a European diplomat involved in the talks. “The U.S. wants to keep leverage; Iran wants immediate relief. Bridging that gap is the whole challenge.”

Implications for Markets

The standoff is being closely watched by energy traders and sanctions compliance officers. Iran’s frozen funds, held primarily in South Korea, Iraq, and Luxembourg, could provide a lifeline for its import-dependent economy if released. Oil markets have priced in a slim chance of near-term sanctions relief, with Brent crude hovering near $82 per barrel on Friday. “A breakthrough would likely knock prices lower, but any failure to deliver could tighten the screws on Tehran,” said an analyst at a London-based consultancy.

Cautious Diplomacy

Both sides have sought to manage expectations publicly. Iranian Foreign Minister Hossein Amir-Abdollahian earlier this week said that “serious progress” had been made, while U.S. Special Envoy for Iran Robert Malley told a congressional hearing that “the window for diplomacy is narrowing.” The mixed signals have left analysts skeptical of an imminent deal. “We’ve seen this movie before,” said a former U.S. Treasury official. “Until the ink is dry, nothing is agreed.”

Repeated attempts to reach other Iranian and U.S. officials for comment on Thursday were unsuccessful.

Correction: An earlier version of this article misstated the currency benchmark. Oil is priced in Brent crude, not WTI.