US-Iran talks yield conflicting claims on frozen assets, nuclear inspections

Following the first working-level negotiations between the U.S. and Iran aimed at implementing a memorandum of understanding, divergent claims have emerged regarding the conditions for releasing Iran's frozen assets abroad and the resumption of International Atomic Energy Agency (IAEA) nuclear inspections.

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According to Article 11 of the memorandum of understanding regarding the release of frozen assets, funds should have been released in two tranches of $6 billion each, and the final signing took place in Switzerland.

Iranian Parliament Speaker Mohammad Bagher Ghalibaf stated on his flight from Switzerland to Oman that an agreement had been reached to release $12 billion in frozen assets, to be disbursed in two $6 billion installments, with the final signing in Switzerland. However, the U.S. has not confirmed this. The memorandum's Article 11 stipulates that the U.S. will allow full use of frozen funds in line with the MOU's implementation, with specific procedures to be determined during a 60-day follow-up negotiation period. The U.S. had previously indicated that frozen funds would be released gradually based on Iran's fulfillment of nuclear-related obligations, not solely upon signing the MOU.

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The released funds will be used for the purchase of food, and this food will be purchased entirely from American farmers.

While the U.S. announced that Iran had agreed to accept IAEA inspectors, calling it the "first step to permanently end Iran's nuclear weapons program," Iran's foreign ministry denied making new commitments on nuclear inspections. Iran stated that cooperation with inspectors would proceed according to existing procedures established by its parliament and the Supreme National Security Council. Disagreements also surfaced regarding the use of the released funds. U.S. President Donald Trump told reporters that the funds would be used to purchase food "entirely from American farmers." Vice President Mike Pence added that the U.S. and Qatar would approve and supervise the fund disbursement, which could be used to buy U.S. soybeans, corn, and wheat. This plan aims to prevent Iran from diverting funds to support pro-Iranian armed groups while benefiting American farmers. However, Iran's Central Bank Governor Abdolnaser Hemmati countered that while Iran would have no problem buying U.S. agricultural products if prices and quality were suitable, the MOU "does not contain any obligation to purchase agricultural products from the United States."

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There is no obligation in the memorandum of understanding to purchase agricultural products from the United States.

Meanwhile, the easing of oil sanctions has already taken effect. The U.S. Treasury Department's Office of Foreign Assets Control (OFAC) issued "General License X," permitting transactions typically necessary for the production, sale, and delivery of Iranian crude oil, petrochemicals, and petroleum products until 12:01 a.m. Eastern Time on August 21. Working-level officials from both sides remain in Switzerland to continue technical negotiations this week, with plans to form four working groups to address sanctions relief, nuclear issues, reconstruction and economic development, and monitoring and implementation.

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We have not made any new commitments regarding nuclear inspections.