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Frozen Funds Stall U.S.–Iran Negotiations

Tehran is demanding staged access to billions as a confidence step, a position that is blocking a final settlement and putting political pressure on the White House.

Overview

  • On Saturday, June 6, reporting showed talks have effectively stalled over Iran’s demand for staged access to billions in assets that remain frozen under U.S. sanctions.
  • Iranian officials, including Mohsen Rezaei, framed access to the money as a “test of trust” and said the funds are a precondition for broader progress in negotiations.
  • The White House says any release would follow a final agreement, and President Trump faces strong domestic political risk if he approves large transfers to Tehran.
  • Former sanctions officials and analysts have proposed technical fixes—letting humanitarian draws from accounts held in Qatar, Oman or Iraq or issuing narrow oil waivers to China—but no mechanism has been adopted.
  • The impasse blocks talks on nuclear limits, sanctions relief and reopening the Strait of Hormuz, and it could deepen Iran’s economic strain or raise the chance of further military flareups if diplomacy collapses.