Iran Seeks Release of $24 Billion in Frozen Funds, Wants Half Available Immediately

Iran is seeking the release of $24 billion in frozen funds in talks with the US, according to local media reports. Tehran also wants to be able to use half of that money immediately once an agreement is announced.

Odaily, a cryptocurrency-focused media outlet, reported on May 26 that Iran's Tasnim News Agency, citing a source close to the negotiating team, said Tehran is negotiating with Washington over a draft 14-point memorandum of understanding.

Iran is demanding the release of $24 billion in frozen assets as part of the talks. It is insisting that $12 billion, or half the total, be made available as soon as the agreement is announced, with the rest transferred within 60 days.

The source said Iranian Parliament Speaker Mohammad Bagher Ghalibaf's visit to Qatar was also related to the issue. Ghalibaf reportedly traveled there to discuss how Iran would secure the first $12 billion and remove obstacles to the transfer process.

Iran does not want to repeat problems that arose in past agreements involving funds held in South Korea and Qatar. The current negotiations are therefore focused on setting clear terms for when the money can be used and how it will be transferred.

Talks held in Doha were "generally good," the source said. The discussions also helped advance broader negotiations with the US.

Iran still views the US as an "untrustworthy party," the report said. Market participants say developments in US-Iran talks could continue to affect international oil prices and sentiment toward risk assets, as the release of frozen funds is intertwined with issues including the Strait of Hormuz and nuclear negotiations.