Iran's frozen assets, blocked by US sanctions primarily imposed due to its nuclear and ballistic missile programs and initially following the 1979 revolution, are estimated to be over $100 billion. This sum represents roughly one-third of Iran's GDP, which is just over $300 billion. For comparison, Russia has about $340 billion frozen abroad, but its economy is much larger at $2.6 trillion. These assets include funds from oil and gas exports, as well as payments for arms deals that were never completed. While only a small portion is directly in the US, most are held in foreign banks in various countries, impacted by secondary sanctions that prohibit third-country entities from doing business with Tehran.
Key locations where these funds are held include China ($20 billion), India ($7 billion), Iraq ($6 billion), Japan ($1.5 billion to $3 billion), and Qatar ($6 billion). Luxembourg stores around $1.6 billion, and the US itself holds approximately $2 billion in directly frozen Iranian assets. Iranian officials have recently indicated that about $12 billion in Qatar could be among the first funds unfrozen, potentially forming part of a larger $24 billion package discussed in negotiations. Notably, a $6 billion fund from oil sales that was frozen in South Korea was transferred to Qatar in 2023 as part of a prisoner swap, but access was later blocked again following new US sanctions.
The unfreezing of these assets is a central demand for Iran in ongoing negotiations with the United States. Iranian officials view access to these funds as a confidence-building measure and a prerequisite for broader talks. Earlier reports suggested the release of up to 25% of all frozen funds if Iran scaled back its nuclear program, though Iran has specifically requested access to $12 billion. Should a portion of these funds be unfrozen, it would significantly strengthen Iran's foreign exchange reserves, alleviate pressure on imports, and provide a substantial financial cushion for the government.
