President Donald Trump announced that any funds unfrozen from Iranian accounts will be strictly controlled by the U.S. and exclusively used for the purchase of food and medical supplies, sourced solely from the United States. This directive, outlined in a Truth Social post, is part of ongoing peace negotiations and a significant move to reassure critics of the deal within his own party, especially defense hawks.
Vice President JD Vance further elaborated on this plan, stating that the Trump administration intends for these unfrozen Iranian assets to be used to buy U.S. agricultural products such as soybeans, wheat, and corn. Vance credited Jared Kushner for proposing this 'very interesting solution' in conjunction with Qatari mediators. The goal is to make American farmers 'richer' and help feed the Iranian people, presenting it as a 'classic Trump deal.' Iran currently has billions in frozen assets globally, including $6 billion held in Qatar, which could now be directed towards these U.S. purchases.
The U.S. Treasury Department also issued a temporary 60-day waiver on sanctions, allowing Iran to sell petroleum products. This waiver, effective until August 21, is one of the first steps to provide economic relief to Iran as part of an emerging peace deal. While Trump emphasized that the money would specifically support American farmers by covering an alleged "humanitarian crisis" in Iran, Iranian officials, like Central Bank Governor Abdolnaser Hemmati, have suggested that some unfrozen funds could be used for other non-sanctioned goods, without such an obligation to strictly buy U.S. products.
The announcement comes amidst ongoing talks in Switzerland between the U.S. and Iran, which have reportedly laid a good foundation for a final peace deal. The focus on agricultural sales is particularly aimed at energizing key political constituencies for Trump and Republicans ahead of the November midterm elections, especially farmers in the Midwest and South. This move could potentially revive U.S. agricultural trade with Iran, which saw a peak of nearly $593 million in 2008 and $318 million in soybean sales in 2018.
