U.S. in Talks with Qatar to Release $6 Billion in Frozen Iranian Funds

The United States is in discussions with Qatar on a plan to allow Iran to use $6 billion in frozen funds for the purchase of humanitarian goods, The Wall Street Journal reported.

In a report on June 19 (local time), the newspaper cited sources familiar with the matter, stating that the plan is being pursued as one of the initial financial incentives under a previous agreement between the U.S. and Iran.

The initiative aims to grant Iran access to a portion of the estimated $100 billion in Iranian funds frozen globally. The Wall Street Journal explained that the mechanism for using the $6 billion in Qatar could serve as a precedent for handling other frozen Iranian assets.

The process is expected to involve Qatar, which holds the frozen funds, authorizing purchases of food, medicine, or other humanitarian supplies ordered by the Central Bank of Iran.

This report from The Wall Street Journal follows a report by the British daily Financial Times the previous day regarding the U.S. plan to unfreeze the assets, adding further details on the U.S. having commenced consultations with Qatar.

These funds, which are proceeds from Iranian oil sales, were originally frozen in South Korea but were transferred to accounts in Doha, Qatar, after the Biden administration reached a prisoner exchange agreement with Iran in September 2023.

If implemented, the Qatari-based mechanism would allow the U.S. to more easily monitor Iran's purchase history and could serve as a negotiating lever for the U.S. to determine whether to continue allowing access to the frozen funds in the future.

Iran has not yet agreed to this structure.

The plan is reportedly one of several proposals the U.S. side will put forward during upcoming nuclear negotiations between the U.S. and Iran, which are expected to continue for the next two months following the signing of a memorandum of understanding (MOU).

Sanam Vakil, director of the Middle East and North Africa program at the London-based think tank Chatham House, assessed that "even limited asset releases provide Iran with economic breathing room while serving as a political signal of de-escalation between the U.S. and Iran."

According to Article 11 of the agreement between the two countries, the U.S. is stipulated to make Iranian frozen assets "fully available" depending on the progress of final negotiations.

A U.S. official stated this week that as long as Iran engages productively in negotiations, the funds will be allowed to flow.

These discussions are taking place amidst controversy surrounding the economic compensation aspects of the previous agreement.

Critics of the deal argue that Iran is receiving significant rewards before making any concessions regarding its nuclear program.

Conversely, proponents argue that the structure is designed to keep the Strait of Hormuz open to mitigate global economic shocks and prevent further conflict, while limiting economic benefits until Iran shows progress on U.S. demands.
※ Please note: This article was translated by AI and may contain errors.