US to release $12 billion in frozen Iranian assets ahead of talks under proposed deal: Report – Firstpost

The United States will release $12 billion in frozen Iranian assets before the start of a new round of negotiations with Tehran under a proposed agreement between the two countries, Iran’s Mehr news agency reported on Monday, as Washington and Tehran move closer to a broader peace deal aimed at ending months of conflict and restoring stability in West Asia.

The report, which cited a 14-point memorandum of understanding (MoU) allegedly agreed upon by Washington and Tehran, emerged a day after US and Iranian officials said they had reached a peace framework that could bring an end to the war between the two countries, halt the US blockade of Iran and reopen the strategically vital Strait of Hormuz.

According to Mehr, the memorandum lays out a framework for a 60-day negotiation process and includes provisions for the phased release of Iranian assets that have remained frozen under international sanctions.

The document reportedly states that a total of $24 billion in frozen Iranian funds would be released during the two-month negotiation period.

“The release of 24 billion dollars in frozen Iranian assets during the 60-day negotiation period” is one of the key provisions of the memorandum, Mehr reported.

The report further stated that half of the amount — $12 billion — would be made available to Iran before formal negotiations begin.

“Half of this amount must be made available to Iran before the start of the negotiations,” the text cited by Mehr reportedly states.

Neither the White House nor Iranian authorities have officially confirmed the authenticity of the memorandum.

Peace framework announced

The reported asset release comes amid signs of a major diplomatic breakthrough between Washington and Tehran.

US and Iranian officials said on Sunday they had agreed on a peace framework that could pave the way for a comprehensive settlement, ending hostilities, lifting restrictions on Iranian trade and restoring shipping traffic through the Strait of Hormuz.

US President Donald Trump appeared to confirm the breakthrough in a post on his Truth Social platform on Sunday evening.

“The Deal with the Islamic Republic of
Iran is now complete,” Trump wrote around 5:30 pm ET.

The announcement came shortly after Pakistani Prime Minister Shehbaz Sharif said a deal had been reached following mediation efforts by Islamabad.

Sharif said the agreement would be formally signed in Switzerland on Friday, marking what could become one of the most consequential diplomatic settlements in the region in recent years.

Pakistan has played a central role in facilitating contacts between Washington and Tehran in recent months as both sides sought to avoid a prolonged conflict that threatened regional stability and global energy supplies.

Potential shift in US position

If confirmed, the reported release of Iranian assets would represent a notable shift from the position publicly articulated by Trump only days ago.

In an interview with NBC News aired on June 7, Trump rejected the idea of unfreezing Iranian assets before a broader agreement or ceasefire deal had been reached.

“The unfreezing comes after a deal is reached,” Trump said at the time, insisting that Iran would first need to demonstrate compliance with any negotiated framework.

Iranian officials, meanwhile, had repeatedly argued that the release of frozen funds was essential to rebuilding trust after years of sanctions and military confrontation.

The reported memorandum suggests Washington may now be willing to use the release of funds as a confidence-building measure designed to facilitate negotiations and accelerate implementation of the broader peace framework.

Frozen assets at the centre of negotiations

The issue of frozen Iranian assets has long been one of the most contentious aspects of US-Iran relations.

Iran is believed to have more than $100 billion in assets frozen in overseas accounts due to decades of US sanctions and other international restrictions.

Tehran has consistently sought access to at least part of those funds as a condition for any agreement involving sanctions relief, regional security arrangements and limitations on its nuclear programme.

Iranian officials have previously described the release of frozen assets as a “test of trust” that could determine whether negotiations succeed.

Under the framework outlined by Mehr, the remaining $12 billion would be released during the 60-day negotiation period, creating a phased mechanism tied to progress in talks.

Strait of Hormuz reopening boosts market sentiment

The broader peace framework is also expected to have major implications for global energy markets.

A key element of the reported agreement is the reopening of the Strait of Hormuz, the narrow waterway through which roughly a fifth of the world’s oil supplies pass.

The conflict and subsequent restrictions on shipping through the strait had fuelled concerns over supply disruptions and higher energy prices.

News of a potential agreement helped lift investor sentiment across Asian markets on Monday, while oil prices fell sharply on expectations that crude shipments could resume normally through the critical maritime route.

Despite the apparent breakthrough, significant uncertainty remains over the implementation of any agreement.

Neither Washington nor Tehran has released the full text of the reported memorandum, and key details concerning sanctions relief, verification mechanisms and Iran’s nuclear programme remain unclear.

Domestic political opposition in both countries could also complicate efforts to finalise and implement the deal.

Nevertheless, the reported release of $12 billion in frozen Iranian assets, coupled with claims that a broader peace framework has been agreed, marks the strongest indication yet that the United States and Iran may be on the verge of a major diplomatic reset after years of confrontation and mistrust.