Islamabad— The White House has firmly denied reports claiming that the United States agreed to release billions of dollars in Iranian funds, as high-stakes negotiations between Washington and Iran continue in Islamabad.
The clarification comes after media reports, citing Iranian sources, suggested that the US had signalled consent to unfreeze approximately $6 billion in Iranian assets held in Qatar and other international financial institutions. The alleged move was described as a “tangible demonstration” of US seriousness in pursuing a formal agreement.
However, US officials have rejected the claim, even as delegations from both countries engage in critical ceasefire discussions aimed at stabilising tensions in West Asia.
The controversy is closely tied to strategic concerns around the Strait of Hormuz, with reports suggesting that any potential financial concession could be linked to ensuring safe maritime passage through the vital global energy corridor.
The $6 billion in question has a complex history. It was initially frozen in 2018 after then US President Donald Trump withdrew from the Iran nuclear deal and reimposed sanctions. The funds, derived from Iranian oil exports to South Korea, were later moved to accounts in Qatar as part of a 2023 prisoner exchange agreement.
Under that arrangement, five US nationals detained in Iran were released in exchange for five Iranians held in the US, with the funds earmarked strictly for humanitarian purposes such as food, medicine and medical supplies under US Treasury oversight.
However, following the October 7 attacks on Israel, the administration of then US President Joe Biden decided to refreeze the assets, citing security concerns and regional instability.
As diplomatic efforts unfold in Islamabad, the disagreement over financial concessions highlights the deep mistrust between the two sides, raising questions over whether the ongoing talks can yield a breakthrough.
