• Iran's chief negotiator Abbas Baghaei claims the U.S. has committed to releasing Iran's frozen assets in phases, though Washington insists no direct payments are being made.
  • Negotiations center on an interim deal that would unlock funds for humanitarian use, with the first tranche possibly released within weeks.
  • Both sides remain at odds over the scale and timing of asset releases, as technical talks continue.

Interim Deal on Frozen Assets Takes Shape

Iran's top nuclear negotiator Abbas Baghaei said Thursday that the United States has committed to giving Tehran access to its frozen funds abroad, though a U.S. official, speaking on condition of anonymity, countered that Washington is not providing any money to Iran outright. The contradictory statements underscore the delicate negotiations over an interim agreement aimed at easing economic pressure on Iran in exchange for curbs on its nuclear program.

According to people familiar with the matter, the talks have focused on releasing a portion of Iran's estimated $100 billion in frozen assets—held primarily in South Korea, Iraq, and Luxembourg—in staged disbursements. Baghaei claimed that the U.S. has agreed to unlock 50% of the funds upfront, with the remainder to follow within 60 days. However, the U.S. official said no such commitment has been made, stressing that any released funds would be strictly monitored for humanitarian purchases such as food and medicine.

“We are not in the business of writing checks to the Iranian government,” the official said. “Any access to funds would be through a controlled mechanism to ensure they are used for the benefit of the Iranian people, not for malign activities.”

Negotiators have been meeting in Oman and Qatar to hammer out technical details, including the establishment of a escrow account overseen by a neutral third party. The talks are framed as a humanitarian confidence-building measure, with both sides signaling a willingness to de-escalate after months of heightened tensions.

The potential release of assets has significant implications for Iran's struggling economy, which has been battered by sanctions and inflation. Access to even a portion of the frozen funds could provide a lifeline for importing essential goods, easing shortages that have fueled public discontent. However, market reaction has been muted, with analysts warning that any deal remains fragile.

“The devil is in the details,” said a Gulf-based economist. “If the funds come with too many strings attached, the impact on Iran's liquidity will be limited. And without a broader sanctions relief, the economic boost will be temporary.”

Baghaei's remarks appear aimed at domestic audiences, signaling progress in talks. But U.S. officials caution that no agreement is final until the full framework is signed. “We are not there yet,” the U.S. official said. “These are preliminary discussions.”

Correction: An earlier version of this article incorrectly stated that the U.S. had agreed to release 100% of the funds. The figure is 50% according to Baghaei's account.