Iran's delegation arrived at the Islamabad Talks with clear demands, warning it would walk out of negotiations if its demands were not met, as state broadcaster IRIB reported a string of conditions Tehran is pressing on the United States in the first direct talks between the two sides following a fragile April 7 ceasefire.&nbsp;"If the interests of the people and the Islamic Republic are not met, we will leave the negotiating room," the Iranian delegation said, according to IRIB.&nbsp;The Iranian team is being led by Parliament Speaker Mohammad Baqer Qalibaf, Foreign Minister Abbas Araqchi, and former nuclear negotiator Ali Bagheri, a lineup that Iran's Deputy Foreign Minister Kazem Gharibabadi said signals Tehran's seriousness. "This round of talks is not just a negotiation, but a demand," Gharibabadi said, adding that Iran was arriving with a long list of conditions.&nbsp;IRIB reported that following a lengthy bilateral meeting between Qalibaf and the Pakistani delegation, specialised technical teams entered consultations. On the substance of the talks, the broadcaster said Washington had accepted Iran's first condition, the release of frozen Iranian funds.&nbsp;Also Read: <a href="https://www.wionews.com/world/white-house-denies-asset-release-as-high-stakes-islamabad-talks-begin-1775912965012">White House denies asset release as high-stakes Islamabad talks begin</a>&nbsp;The most contentious issue, however, remains Lebanon. A ceasefire is in place in Beirut, but Iran is insisting on an end to Israeli Defence Forces strikes in southern Lebanon, where fighting has continued. Tehran has made clear this is a red line.&nbsp;The warning comes against an already fractured backdrop. The ceasefire that ended roughly 39 days of conflict involving the United States, Israel, and Iran remains disputed, with both sides offering conflicting interpretations of its terms. Iran has separately threatened to keep the Strait of Hormuz closed as long as Israeli strikes persist in Lebanon.&nbsp;Gharibabadi added that Iran was prepared for any outcome. "If the scenario is to defend the country, we are completely serious in this regard," he said.&nbsp;The US delegation, led by Vice President JD Vance and including Special Envoy Steve Witkoff and Jared Kushner, arrived in Islamabad on Friday. Vance, speaking before departure, said Washington was open to engagement but warned Iran against playing games at the table.&nbsp;(Disclaimer: WION takes utmost care to accurately and responsibly report ongoing conflicts in West Asia involving Israel, Iran, the US, Gulf nations and non-state actors like Hezbollah, Hamas, Houthis, Islamic State, and others. Claims and counterclaims, disinformation and misinformation are being made online and offline. Given this context, WION cannot independently verify the authenticity of all statements, social media posts, photos and videos.)

The warning comes against an already fractured backdrop. The ceasefire that ended roughly 39 days of conflict involving the United States, Israel, and Iran remains disputed, with both sides offering conflicting interpretations of its terms.

Iran's delegation arrived at the Islamabad Talks with clear demands, warning it would walk out of negotiations if its demands were not met, as state broadcaster IRIB reported a string of conditions Tehran is pressing on the United States in the first direct talks between the two sides following a fragile April 7 ceasefire. "If the interests of the people and the Islamic Republic are not met, we will leave the negotiating room," the Iranian delegation said, according to IRIB. The Iranian team is being led by Parliament Speaker Mohammad Baqer Qalibaf, Foreign Minister Abbas Araqchi, and former nuclear negotiator Ali Bagheri, a lineup that Iran's Deputy Foreign Minister Kazem Gharibabadi said signals Tehran's seriousness. "This round of talks is not just a negotiation, but a demand," Gharibabadi said, adding that Iran was arriving with a long list of conditions. IRIB reported that following a lengthy bilateral meeting between Qalibaf and the Pakistani delegation, specialised technical teams entered consultations. On the substance of the talks, the broadcaster said Washington had accepted Iran's first condition, the release of frozen Iranian funds. Also Read: White House denies asset release as high-stakes Islamabad talks begin The most contentious issue, however, remains Lebanon. A ceasefire is in place in Beirut, but Iran is insisting on an end to Israeli Defence Forces strikes in southern Lebanon, where fighting has continued. Tehran has made clear this is a red line. The warning comes against an already fractured backdrop. The ceasefire that ended roughly 39 days of conflict involving the United States, Israel, and Iran remains disputed, with both sides offering conflicting interpretations of its terms. Iran has separately threatened to keep the Strait of Hormuz closed as long as Israeli strikes persist in Lebanon. Gharibabadi added that Iran was prepared for any outcome. "If the scenario is to defend the country, we are completely serious in this regard," he said. The US delegation, led by Vice President JD Vance and including Special Envoy Steve Witkoff and Jared Kushner, arrived in Islamabad on Friday. Vance, speaking before departure, said Washington was open to engagement but warned Iran against playing games at the table. (Disclaimer: WION takes utmost care to accurately and responsibly report ongoing conflicts in West Asia involving Israel, Iran, the US, Gulf nations and non-state actors like Hezbollah, Hamas, Houthis, Islamic State, and others. Claims and counterclaims, disinformation and misinformation are being made online and offline. Given this context, WION cannot independently verify the authenticity of all statements, social media posts, photos and videos.)

The warning comes against an already fractured backdrop. The ceasefire that ended roughly 39 days of conflict involving the United States, Israel, and Iran remains disputed, with both sides offering conflicting interpretations of its terms.

'If our interests are not met, we will walk out': Iran threatens to leave Islamabad talks

Diplomatic tensions sharpened on Saturday as the United States firmly denied claims that it had agreed to release Iran’s frozen assets, even as negotiations to end the Middle East conflict began in Islamabad. The dispute highlights how financial restrictions have become central to geopolitical bargaining. While an unnamed Iranian source suggested progress had been made, a senior White House official dismissed the assertion outright, stating: “False. The meetings have not even started yet.” The contradiction sets the tone for talks that remain precarious and closely watched.<h2>What are Iran’s frozen assets?</h2>Iran’s frozen assets are funds held in foreign banks that Tehran cannot access due to international sanctions. These include oil revenues, foreign exchange reserves and other state-controlled holdings accumulated over years of restricted trade. A portion of these funds is held in countries such as Qatar and South Korea, often arising from energy transactions conducted under sanction-limited frameworks. A central component of Iran’s frozen assets is the $6 billion derived from oil sales to South Korea, initially blocked in 2018 after Donald Trump reimposed sanctions and scrapped a deal between world powers and Tehran over its nuclear programme. The funds were later moved to Qatari accounts under a 2023 prisoner swap mediated by Qatar, involving the exchange of five US citizens and five Iranians. US officials said at that time that ⁠the money ​was restricted to humanitarian use only, the money was frozen again by the administration of Joe Biden following the October 7 attacks by Hamas, with Washington stressing Iran would not access it “for the foreseeable future.”&nbsp;ALSO READ: <a href="https://www.wionews.com/photos/after-four-decades-of-enmity-can-us-and-iran-finally-make-peace-at-islamabad-negotiations-1775897733420">After four decades of enmity, can US and Iran finally make peace at Islamabad negotiations?</a>

<blockquote class="twitter-tweet">Islamabad April 11 ,2026. Prime Minister Muhammad Shehbaz Sharif held a meeting with the Iranian delegation at the Islamabad Talks today. The Iranian side was led by the Honorable Speaker of the Iranian Consultative Assembly, Mr. Mohammad Bagher Ghalibaf, assisted by Foreign… <a href="https://t.co/xUSCq9sGpS">pic.twitter.com/xUSCq9sGpS</a>&mdash; Prime Minister&#39;s Office (@PakPMO) <a href="https://twitter.com/PakPMO/status/2042941253835473200?ref_src=twsrc%5Etfw">April 11, 2026</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

&nbsp;<h2>Why do they matter in negotiations?</h2>The unfreezing of assets has long been a central demand of Tehran in diplomatic engagements. Iranian officials maintain that any durable agreement must include access to these funds, framing them as sovereign resources rather than concessions. Among the four demands, put forth by the Iranian delegation are:&nbsp;&nbsp;* full sovereignty over the Strait of Hormuz,&nbsp; * complete war reparations by the aggressor,&nbsp; * unconditional release of blocked assets, and&nbsp; * a durable ceasefire across the entire West-Asia Region.&nbsp;Early, even before the meeting begun an unnamed "senior Iranian source" told news outlet Reuters that the United States had agreed to unfreeze the assets and that the move was directly linked to ensuring safe passage in the Strait of Hormuz.&nbsp;ALSO READ: <a href="https://www.wionews.com/photos/from-annihilation-threat-to-ceasefire-deal-how-did-trump-pivot-so-quickly-on-iran-1775650749141">From ‘annihilation’ threat to ceasefire deal: How did Trump pivot so quickly on Iran?</a><h2>What is happening now?</h2>Talks have formally begun in Islamabad. Pakistani officials described the peace process as having “commenced”, though substantive discussions are still in early stages. Despite Iranian claims, Washington has made clear that no agreement on asset release has been reached. The US denial underscores enduring mistrust and the complexity of linking financial sanctions to ceasefire negotiations. For now, Iran’s frozen billions remain both an economic constraint and a strategic bargaining tool at the heart of fragile diplomacy.

Iran’s frozen assets are funds held in foreign banks that Tehran cannot access due to international sanctions. These include oil revenues, foreign exchange reserves and other state-controlled holdings accumulated over years of restricted trade. 

Diplomatic tensions sharpened on Saturday as the United States firmly denied claims that it had agreed to release Iran’s frozen assets, even as negotiations to end the Middle East conflict began in Islamabad. The dispute highlights how financial restrictions have become central to geopolitical bargaining. While an unnamed Iranian source suggested progress had been made, a senior White House official dismissed the assertion outright, stating: “False. The meetings have not even started yet.” The contradiction sets the tone for talks that remain precarious and closely watched. What are Iran’s frozen assets? Iran’s frozen assets are funds held in foreign banks that Tehran cannot access due to international sanctions. These include oil revenues, foreign exchange reserves and other state-controlled holdings accumulated over years of restricted trade. A portion of these funds is held in countries such as Qatar and South Korea, often arising from energy transactions conducted under sanction-limited frameworks. A central component of Iran’s frozen assets is the $6 billion derived from oil sales to South Korea, initially blocked in 2018 after Donald Trump reimposed sanctions and scrapped a deal between world powers and Tehran over its nuclear programme. The funds were later moved to Qatari accounts under a 2023 prisoner swap mediated by Qatar, involving the exchange of five US citizens and five Iranians. US officials said at that time that ⁠the money was restricted to humanitarian use only, the money was frozen again by the administration of Joe Biden following the October 7 attacks by Hamas, with Washington stressing Iran would not access it “for the foreseeable future.” ALSO READ: After four decades of enmity, can US and Iran finally make peace at Islamabad negotiations?

Iran’s frozen assets are funds held in foreign banks that Tehran cannot access due to international sanctions. These include oil revenues, foreign exchange reserves and other state-controlled holdings accumulated over years of restricted trade.&nbsp;

What are Iran’s billion-dollar frozen assets? Why is Tehran demanding release of these funds in US-Iran peace talks in Pakistan?

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'If our interests are not met, we will walk out': Iran threatens to leave Islamabad talks

What are Iran’s frozen assets? One of Tehran’s key demands amid US-Iran talks