Iran demands frozen assets release in initial US deal phase, causing stalemate

Negotiations between the United States and Iran have stalled over Tehran's demand for the immediate release of billions of dollars in frozen assets as the initial phase of any memorandum of understanding (MOU).

This dispute has become a major obstacle to progress toward an MOU, which is intended as a preliminary step to a broader nuclear agreement. Sources familiar with the discussions told The Jerusalem Post that regional mediators have attempted to bridge the gap by proposing various compromises. One such proposal involved a humanitarian fund of several billion dollars designated solely for purchasing medicine, food, and agricultural goods for Iran.

However, Iranian negotiators are insisting on gaining access to liquid funds upfront, as part of "Phase A" of an MOU, before implementing any significant measures. U.S. officials have rejected this demand, arguing that any unfreezing of funds or sanctions relief must be directly linked to verifiable actions by Iran. Washington fears that releasing funds before securing concrete concessions would diminish its leverage and complicate reaching a final agreement on Iran's nuclear program and security arrangements in the Strait of Hormuz.