Washington (Geedfadhinews) 

The United States is working with Qatar on a plan to allow Iran to access billions of dollars in frozen funds for humanitarian purposes, people familiar with the talks said.

The plan, which has not yet been finalized, is part of an economic stimulus package that was included in a recent deal to end the war and reopen talks on Iran’s nuclear program.

Under the plan, Iran would initially

Under the plan, Iran would initially be able to use $6 billion in funds held by Qatar. The money would be used to buy food, medicine and other humanitarian supplies, with the orders placed by Iran’s central bank, while Qatar would manage the disbursement of the goods.

The money, which comes largely from Iran’s oil sales, has long been blocked from foreign countries due to US sanctions. The people familiar with the matter said the Qatari approach could be a model for handling other Iranian assets held in foreign countries.

Tehran is estimated to have around $100 billion in international assets frozen, and it is urgently seeking to release at least $24 billion of that.

However, Iran has not yet agreed to the new approach to releasing the funds held in Qatar. The plan is among several ideas that Washington is expected to table in the next two months, as the United States and Iran resume nuclear talks following a deal that halted the war.

Sanam Vakil, Middle East director at London’s Chatham House think tank, said even a limited release of frozen assets could be an economic lifeline for Iran and carry a political message of de-escalation.

“Even a limited release of frozen assets can act as an economic lifeline and a political message of de-escalation,” Vakil said. She added that this is one of the tangible incentives Iran could receive from Washington to stabilize its currency and ease the economic pressure on the country.

However, the plan still faces many challenges. Iran’s Supreme Leader, Mojtaba Khamenei, said on Thursday that President Donald Trump had agreed to a ceasefire out of “desperation.”

The statement appeared to anger Trump, who tweeted: “We didn’t get any help, Iran did. They’re done. We’re waiting for the 60 days. They’re not getting any money, not even a dime.”

The deal Trump signed on Wednesday states that the United States will work to fully release Iran’s frozen assets, with the two sides discussing how to do so.

A US official said the funds would be released if Iran actively participates in the talks. The Qatari plan is therefore an early test of how Washington can provide Tehran with financial access, while still maintaining oversight and control over how the money is spent.

The plan also comes on top of the other money Iran is expected to receive from oil sales, after Washington agreed to ease some sanctions once the deal was signed. In both cases, the US is expected to provide sanctions waivers and legal approvals that would facilitate transactions.

Critics of the deal argue that Washington is offering Tehran big economic benefits before Iran makes real concessions on its nuclear program.

But US Vice President JD Vance and other officials defending the deal say the move could ease pressure on the global economy, especially if it helps open the Strait of Hormuz, a vital waterway for the world’s oil.

They also argue that this plan could prevent another war, and limit Iran’s economic gains until it makes progress on US demands.

Trump said on Wednesday, speaking at the G7 summit in France, that the funds were originally from Iran, despite the fact that the United States had frozen them.

“We took their money, it’s not our money, it’s their money, and we froze it,” Trump told reporters. “At some point, I think we’re going to give it back.”

Iranian funds are frozen in countries including China, India, Iraq and Qatar. In 2023, the Biden administration granted a waiver that allowed $6 billion in Iranian oil sales to be transferred from South Korea to Qatar.

That was part of a deal that saw Iran release five American citizens it had been holding. The funds were intended to buy humanitarian goods, but Biden refroze them after the October 7, 2023, Hamas attacks in southern Israel.

What Happens Next?

New talks to reactivate Qatari funds began in late May, when Iran’s parliament speaker and chief negotiator, Mohammad Bagher Ghalibaf, led a delegation to Doha, according to people familiar with the matter.

Iran is in dire need of hard foreign currency, as the country faces high inflation, a devaluation of its domestic currency and widespread economic pressure.

Accessing some of the frozen funds could help Tehran buy essential goods, but analysts say that real reform of Iran’s economy requires the lifting of broad sanctions.

However, U.S. Vice President JD Vance and other officials supporting the agreement argue that it could help ease pressure on the global economy, particularly if it contributes to maintaining the free flow of oil shipments through the Strait of Hormuz, a vital route for global energy supplies. Analysts note that any broader economic impact would depend on regional stability and future developments.. Read more