President Donald Trump stated that funds released from frozen Iranian accounts will be held "in escrow, controlled by the U.S.A." and used exclusively for purchasing U.S.-grown products like corn, wheat, and soybeans, as well as medical supplies. This move aims to alleviate concerns regarding peace negotiations, which both sides indicate are progressing, and comes amid broader discussions to end the nearly four-month war and ensure the Strait of Hormuz remains open. Trump announced this via a post on Truth Social on Tuesday, emphasizing the funds would address what he called a "humanitarian crisis" in Iran while supporting American farmers.
Iran, however, disputes Trump's assertion regarding the restricted use of funds. Iran's Foreign Ministry spokesman, Esmail Baghaei, stated that his country would use the funds "freely, in whatever manner it deems appropriate." Separately, Iran's Deputy Foreign Minister Kazem Gharibabadi indicated that $12 billion of its frozen finances are set to be released in two equal installments of $6 billion each as part of ongoing talks, though the U.S. has not confirmed this specific amount.
The discussions between the U.S. and Iran in Switzerland involve setting up technical working groups to address issues such as unwinding sanctions on the Islamic Republic and curbing its uranium enrichment. Trump also claimed that Iran had agreed to "highest level Nuclear inspections long into the future" as part of the nuclear framework. The broader negotiations are taking place after American and Israeli bombing damaged Iran’s military and infrastructure from late February, and Iran’s closure of the Strait of Hormuz caused energy prices to soar. Brent crude declined 1.3% on Tuesday following developments.
Trump further noted that a temporary 60-day license for Iranian oil sales had been issued by the Treasury Department. He claimed that a record-breaking 19 million barrels of oil flowed through the Strait of Hormuz on Monday, contributing to falling oil prices and a safer global environment. The U.S. president's statements highlight a divergence in interpretation regarding the newly unfrozen funds, with the U.S. emphasizing control and humanitarian use, while Iran asserts its right to free utilization.
