• Iran's Foreign Ministry spokesman Esmaeil Baghaei claims the U.S. will commit to granting Iran access to its frozen assets, while U.S. officials deny any transfer of funds to Tehran.
  • Negotiations over unfreezing Iranian assets are ongoing, with discussions centering on releasing funds for humanitarian purposes under strict oversight.
  • Any potential deal would involve staged, conditional releases rather than a full restoration of access to all frozen assets.

Conflicting Statements on Frozen Funds

Iran’s Foreign Ministry spokesman Esmaeil Baghaei said on Thursday that the United States will commit itself to giving Iran access to its frozen funds, according to state media. “The U.S. will commit itself to give Iran access to its frozen funds,” Baghaei stated, without providing details on the amount or timeline. However, a U.S. official swiftly pushed back, telling reporters that “the U.S. will not give Tehran any money.” The official, speaking on condition of anonymity, added that discussions are focused on ensuring that any released funds are used exclusively for humanitarian purposes, such as importing food and medicine, under strict monitoring.

Background on Negotiations

The contradictory remarks come amid ongoing indirect talks between the two countries, mediated by Oman and Qatar, aimed at de-escalating tensions and potentially reviving limits on Iran’s nuclear program. At the heart of the discussions is the fate of billions of dollars in Iranian assets frozen abroad, primarily in South Korea, Iraq, and Luxembourg, due to U.S. sanctions. Iran has long sought access to these funds to alleviate severe economic pressures, including high inflation and currency depreciation.

According to people familiar with the matter, negotiators have been discussing a phased release of funds, with the first tranche possibly amounting to $6 billion, earmarked for humanitarian imports. In exchange, Iran would commit to curbing its nuclear enrichment activities and halting support for regional proxies. However, no final agreement has been reached, and both sides remain far apart on key issues, including the scope of sanctions relief and verification mechanisms.

Staged Releases Under Scrutiny

Analysts note that any asset release would likely be incremental and conditional, rather than a lump-sum transfer to Tehran. “The goal is to create a win-win: Iran gets some economic relief for humanitarian needs, while the U.S. gets verifiable compliance on nuclear and regional issues,” said a former U.S. Treasury official familiar with sanctions policy. Still, skepticism abounds. Critics in Washington argue that even humanitarian exemptions can be exploited, as Iran has a track record of diverting funds through complex networks.

A spokesperson for the U.S. State Department declined to comment on the negotiations but reiterated that “no funds will be transferred to the Iranian government directly.” The Treasury Department is reportedly designing mechanisms to ensure that any released assets flow through third-party escrow accounts, with disbursements tied to specific purchases approved by U.S. officials.

Market and Regional Reactions

The conflicting signals have created uncertainty in financial markets. The Iranian rial weakened slightly on Thursday, trading at around 420,000 per U.S. dollar in the unofficial market, while Tehran’s stock exchange saw mixed trading. Regional observers are watching closely: Gulf allies have expressed concern that even partial sanctions relief could embolden Iran’s regional activities. A Gulf diplomat, speaking on condition of anonymity, said, “We need to see concrete commitments from Iran, not just talk of access to funds.”

Baghaei’s comments appear aimed at domestic audiences, signaling progress to a population weary of economic hardship. Yet, without a clear U.S. commitment, the path forward remains murky. As one European diplomat involved in the talks put it, “The rhetoric is part of the negotiation. What matters is what happens at the table.”

This article has been updated to include the U.S. official’s denial of any money being given to Tehran.