US-Iran reach agreement but at odds over $12B frozen assets
What's the story
The United States and Iran have agreed to a framework to extend their ceasefire for 60 days, with a formal signing ceremony expected on Friday in Switzerland. However, even as the deal has been announced, tension remains over Iran's frozen assets worth $12 billion. According to Iran's Mehr news agency, the US will release the funds before negotiations begin.
Conditional agreement
'Pay-for-performance' deal
The document cited by Mehr states that $24 billion in frozen Iranian assets will be released during the 60-day negotiation period after the memorandum of understanding is signed. Furthermore, the text, which hasn't been officially confirmed, mentions that "half of this amount must be made available to Iran before the start of the negotiations." Contradicting this, a senior US official told Axios that no frozen funds would be released until Iran fulfills its commitments, stating, "This is a pay-for-performance deal."
Deal objectives
Peace deal to end hostilities, lift Iran blockade
The peace deal aims to end hostilities and lift the blockade on Iran. "I hereby fully authorize the toll free opening of the Strait of Hormuz, and, simultaneously herewith, authorize the immediate removal of the United States Naval blockade," US President Donald Trump wrote on Truth Social. Pakistani prime minister Shehbaz Sharif, who first announced the deal, said that the agreement also calls for the "immediate and permanent termination of military operations on all fronts, including in Lebanon."
International response
Mediators will 'facilitate a series of meetings this week'
Sharif said that Pakistan and the other mediators will "facilitate a series of meetings this week," followed by technical discussions. The sides have given themselves 60 days to negotiate a technical deal on how to down-blend Iran's highly enriched uranium while also freezing and monitoring its nuclear program going ahead. Israel has not commented on the deal yet.