White House denies asset release as high-stakes Islamabad talks begin

The White House on Saturday (April 11) dismissed reports suggesting the United States had consented to the release of Iranian capital previously blocked in Qatari and various international financial institutions. This official denial arrives as American and Iranian representatives convene in Islamabad for high-stakes negotiations aimed at brokering a permanent ceasefire.

The controversy follows a report quoting a high-ranking Iranian official who claimed Washington had signalled its approval to unfreeze the assets. The source welcomed the purported move as a "tangible demonstration" of American "seriousness" in its pursuit of a formal agreement.

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Additionally, an anonymous source claimed the decision to release the funds was "directly linked to ensuring safe passage through the Strait of Hormuz." The $6 billion in question, originating from Iranian petroleum exports to South Korea, was first blocked in 2018. While originally slated for unfreezing in 2023 under a prisoner exchange, the funds were refrozen following the October 7, 2023, attacks on Israel.

The current negotiations in Pakistan follow a fragile two-week ceasefire mediated earlier this month. Tehran enters these talks with a rigid 10-point plan, with its primary demands centring on the complete lifting of all economic sanctions and the total withdrawal of US forces from regional bases. Crucially, Iran is seeking international recognition of its sovereignty over the Strait of Hormuz, where it aims to implement transit fees and control maritime access—a position the US has characterised as "short-term extortion."

As of today, the status of these talks remains "make-or-break." While the Iranian delegation, led by Parliamentary Speaker Mohammad Bagher Ghalibaf, has arrived in Islamabad, they have expressed "complete mistrust" in Washington.

Meanwhile, US Vice President JD Vance, leading the American delegation, warned that the US would not be "played" and insisted that any permanent deal must include strict nuclear constraints and the guaranteed, unimpeded reopening of the Strait of Hormuz to global oil traffic.