• Iran's top negotiator claims the US has pledged to provide access to frozen assets, though Washington denies any direct payment.
  • Talks focus on a phased release of funds for humanitarian purposes, with strict oversight mechanisms.
  • The negotiations are part of broader interim deal discussions, but key differences remain on sanctions relief.

Iran's Assertion and US Response

Iran's lead negotiator, Ali Baghaei, stated on Thursday that the United States has committed to granting Iran access to its frozen funds abroad, according to state media. "The US will commit itself to give Iran access to its frozen funds," Baghaei said, without providing further details. However, a US official quickly pushed back, telling Reuters that "the United States will not give Tehran any money," emphasizing that any funds released would be strictly controlled for humanitarian purchases.

The conflicting statements highlight the delicate nature of ongoing talks between the two countries, which have been exploring an interim agreement to reduce tensions. The discussions, held indirectly through Omani and Qatari mediators, center on a potential framework where Iran would limit certain nuclear activities in exchange for limited sanctions relief and access to some of its estimated $100 billion in frozen assets.

Phased Release Under Discussion

According to people familiar with the matter, the negotiations have focused on a staged release of funds, tied to specific Iranian commitments. Under one proposed mechanism, Iran would gain access to a portion of the funds within 60 days, with subsequent releases conditioned on verifiable steps. The funds would be held in escrow accounts in third countries and could only be used for importing food, medicine, and other humanitarian goods, consistent with existing sanctions exemptions.

Analysts say the US approach aims to provide tangible economic relief to Iran without fully restoring its access to the global financial system. "The US is trying to create a pathway for humanitarian trade while maintaining pressure on Iran's broader economy," said a Gulf-based financial analyst. "This is not a return to the JCPOA era."

Regional and Economic Implications

The prospect of even limited fund releases has implications for regional markets and Iran's struggling economy. The Iranian rial strengthened slightly on the news, though traders remain skeptical. "Any liquidity injection will help with imports, but it's not a game-changer," noted a Tehran-based economist. "The real issue is the broader sanctions regime."

Regional partners, particularly Gulf states, are watching closely. Some have expressed support for a humanitarian channel but worry about potential diversion of funds. The US has sought to reassure allies that any mechanism will include robust monitoring.

Sticking Points Remain

Despite the optimistic tone from Tehran, significant hurdles persist. Iran continues to demand comprehensive sanctions relief, which Washington is unwilling to provide without a more permanent nuclear deal. The two sides also disagree on the sequencing of steps—whether fund releases should precede or follow Iranian compliance.

Efforts to reach a formal agreement have hit repeated snags, according to diplomats involved in the talks. Without a deal, Iran's liquidity crisis will persist, exacerbating inflation and shortages. "We are at a critical juncture," a European mediator said. "The window for a diplomatic solution is narrowing."

What's Next

Negotiators are expected to meet again in the coming weeks, with discussions likely to focus on technical details of a fund-release mechanism. Meanwhile, Iran's central bank has reportedly prepared a list of priority imports, signaling expectation of progress.

Correction: An earlier version of this article incorrectly attributed a quote to an unnamed US official. The correct attribution has been updated.