Iran Adviser Says US-Iran Talks Stalled Over Frozen Assets Dispute

Talks between the US and Iran have stalled over differences on releasing Iran’s frozen assets, an adviser to Iran’s supreme leader said. Markets are watching whether the two sides can reach a deal and whether tensions in the Middle East may ease.

CNN reported on June 5 that the adviser said in an interview that negotiations had reached a deadlock and that US President Donald Trump was responsible for breaking it. “The ball is in Trump’s court,” he said.

Iran is demanding the immediate release of $12 billion in frozen assets if the two sides strike an interim agreement. Tehran has also proposed releasing another $12 billion at a later stage.

The US, by contrast, is concerned that a large asset release early in the negotiations would surrender a key source of leverage, the report said.

Iran views the release of frozen assets as a trust-building measure between the two countries and says acceptance by the Trump administration could open a “new chapter” in bilateral ties.

The adviser also said that if the US resumes military action, Iran could widen the scope of any conflict beyond the Strait of Hormuz to the Indian Ocean, the Bab el-Mandeb Strait, the Red Sea and the Mediterranean. He added that the likelihood of an actual war remains low.

On the possibility of a meeting between Trump and Iranian Supreme Leader Ayatollah Ali Khamenei, he said, “That will not happen.” The negotiations are still at an early stage, he said, and Trump’s side is responsible for the current impasse.

Trump has repeatedly said in recent days that talks with Iran are continuing and that an agreement is near. Even so, the two sides remain far apart on the release of frozen assets and the scope of sanctions relief.