US agrees to unfreeze Iranian assets in Qatar: Report
What's the story
The United States has reportedly agreed to unfreeze Iranian assets held in Qatar and other foreign banks, a senior Iranian source told Reuters. The source welcomed the decision as a sign of "seriousness" in negotiations with Washington. However, the US has not publicly confirmed this development or commented on the unfreezing of assets.
Key negotiations
Unfreezing assets linked to safe passage through Strait of Hormuz
The Iranian source, who spoke on condition of anonymity, said that unfreezing the assets was "directly linked to ensuring safe passage through Strait of Hormuz." This is expected to be a major topic in upcoming talks. Another Iranian source claimed to Reuters that the US had agreed to release $6 billion in frozen Iranian funds held by Qatar.
Fund history
Funds originally frozen in 2018
The $6 billion in question was originally frozen in 2018 as part of a US-Iranian prisoner swap deal mediated by Doha. The funds were supposed to be released in 2023 but were refrozen by President Joe Biden's administration after the October 7, 2023, attacks on Israel by Hamas, an Iranian ally. At that time, US officials had stressed that Iran would not have access to these funds for the foreseeable future.
Fund blockade
Funds moved to Qatari bank accounts during prisoner swap
The funds, which are proceeds from Iranian oil sales to South Korea, were blocked in South Korean banks after President Donald Trump reimposed sanctions on Iran in 2018. This was a part of his administration's withdrawal from the nuclear deal with Tehran. Under the September 2023 US-Iran prisoner swap mediated by Doha, these funds were moved to Qatari bank accounts.
Usage restrictions
Funds could only be used for humanitarian purposes
US officials had said at the time that these funds could only be used for humanitarian purposes. They were to be paid to approved vendors for food, medicine, medical equipment, and agricultural goods shipped into Iran under US Treasury oversight. Meanwhile, after over six weeks of conflict, the United States and Iran are ready to hold peace talks in Islamabad, Pakistan, on Saturday.