Iran seeking release of $24 billion frozen assets in US deal? What we know

Iranian media on Tuesday (May 26) reported that Tehran’s negotiators were seeking the release of about $24 billion in frozen assets held abroad as part of ongoing efforts to end the war with the United States. This comes as the top Iranian delegation was in Qatar to hold talks over key issues, including the release of funds. Tehran earlier said that it was finalising a 14-point framework for a deal on ending the conflict. Despite the ongoing talks, tensions between the two countries renewed after the US military struck Iranian missile launch sites and boats near the Strait of Hormuz, saying that they acted in “self-defence”. The move drew sharp condemnation from Tehran, which accused the US of ceasefire violation and warned of retaliation.

Tasnim news agency reported, citing a source close to the negotiating team, “Iran’s frozen assets are to be released during the course of the negotiations, and this amount is estimated at $24 billion in accordance with the 14-point memorandum of understanding.”

It added that around half of that sum “should be made available at the start of the announcement of the memorandum.”

The report came as a senior Iranian delegation arrived in Qatar for high-level talks. Parliament Speaker Mohammad Bagher Ghalibaf, Foreign Minister Abbas Araghchi, and Central Bank Governor Abdolnaser Hemmati travelled to Doha on Monday (May 25) to discuss key aspects of the negotiations, including the phased release of frozen Iranian funds.

According to Tasnim, Ghalibaf’s visit to Qatar was “aimed at reaching an understanding on the implementation of Iran’s demand and the method of accessing $12 billion in the first phase,” among other issues.

While there is no official figure for the amount of Tehran’s frozen assets abroad, Iranian media reports have estimated the total between $100 billion and $123 billion.

The issue of frozen Iranian funds has remained a major point of friction between Tehran and Washington for years. In 2023, around $6 billion in Iranian assets held in South Korean banks was transferred to Qatar as part of a prisoner exchange deal involving five American citizens detained in Iran. However, the funds were never released after relations sharply deteriorated following Hamas’s October 7, 2023, attack on Israel, which triggered the Gaza war and intensified regional tensions.

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