• Iran expects access to its frozen assets under an interim deal, with phased releases tied to humanitarian use.
  • The U.S. insists on staged releases rather than direct unfreezing, leaving gaps on immediate liquidity.
  • Talks edge toward an agreement that could unlock about half of the funds now, with the rest within one to two months.

Negotiations Intensify

Negotiators are closing in on an interim deal that would grant Tehran access to a portion of its frozen assets, according to Iranian Foreign Ministry spokesperson Baghaei. “The U.S. will commit itself to give Iran access to its frozen funds,” Baghaei said, though he added that Washington will not provide direct cash to Tehran. The comments come as talks in Vienna enter a critical phase, with both sides signaling willingness to move forward despite lingering differences.

Under the potential arrangement, roughly half of Iran’s blocked funds—estimated at tens of billions of dollars—could be released upon signing, a person familiar with the discussions said. The remainder would be freed within 60 days, subject to verification that the money is used for humanitarian goods. The U.S. Treasury declined to comment, but an administration official said any relief would be “phased, verifiable, and narrowly targeted to avoid sanctions evasion.”

Sticking Points Remain

Despite the optimism, the precise timeline and amount of immediate liquidity remain unresolved. Iranian negotiators have pushed for a larger upfront release to ease acute economic pressures, while Washington insists on a gradual approach tied to compliance milestones. “We cannot afford to release funds without safeguards,” a European diplomat involved in the talks said. “The concern is that Iran could divert the money to non-humanitarian purposes.”

Markets have priced in some probability of a deal—oil prices dipped slightly on the news, and the Iranian rial strengthened marginally in parallel trading. However, analysts caution that without a final agreement, sanctions will remain in full force, keeping Iran’s economy under strain.

Broader Implications

An interim deal could ease humanitarian pressures in Iran, where inflation and shortages of medicine have worsened. But critics warn that any unfreezing, even for humanitarian uses, could free up other resources for Tehran’s regional activities. The talks are separate from nuclear negotiations, which remain stalled.

Attempts to reach Baghaei for further comment were unsuccessful. The next round of discussions is expected in Geneva next week.