U.S. begins talks on releasing $6 billion in frozen Iranian funds

The United States is in discussions with Qatar regarding the potential release of $6 billion in frozen Iranian funds, with the stipulation that the money be used exclusively for humanitarian purchases. This development, reported by The Wall Street Journal, is described as one of the initial financial incentives linked to a broader agreement between the U.S. and Iran.

Under the proposed arrangement, Qatar, which holds the frozen funds, would permit Iran to purchase food, medicine, and other humanitarian items. This mechanism is seen as a way to facilitate U.S. oversight of Iran's spending and provide leverage for future negotiations. The Wall Street Journal noted that the handling of these funds in Qatar could set a precedent for future transactions involving other frozen Iranian assets, estimated to be worth $100 billion globally.

This initiative follows a report by the Financial Times detailing the U.S. intention to unfreeze the assets. The $6 billion in question originates from payments for Iranian crude oil. These funds were initially frozen in South Korea but were transferred to an account in Doha, Qatar, following a September 2023 agreement between the U.S. and Iran for a prisoner exchange.

Iran has not yet formally agreed to this specific structure for the release of funds. The proposal is understood to be one of several offers the U.S. plans to present during the upcoming two-month negotiations concerning Iran's nuclear program, which are set to commence after the signing of a memorandum of understanding (MOU).