Trump and Iran clash over control of billions in frozen assets abroad, expert says

As U.S. and Iranian negotiators meet in Switzerland on Sunday, a regional analyst warned that the dispute over potentially billions of dollars in unfrozen Iranian assets could quickly test the durability of a fledgling interim deal.

The dispute is said to have emerged as Washington and Tehran began implementing the memorandum of understanding signed on June 17, with negotiators holding the first round of talks in Bürgenstock, near Lucerne, Switzerland.

Accordingly Iran InternationalPresident Masoud Pezeshkian signaled Tehran’s expectations early on Sunday, saying, “$6 billion of our funds in Qatar will be returned. Trump, who tried to deny Iran’s rights, accepted these in his last speech.”

The origins of the dispute date back to discussions at the G7 summit in Évian-les-Bains, France, where world leaders discussed the issue.

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“We took their money, it’s not our money, it’s their money and we froze it,” President Donald Trump said. “At a certain point in time, I think we’re going to have to give it back.”

Trump also emphasized that access to funds is strictly conditional, writing on Truth Social that if Iran fails to fulfill its commitments, it will not receive “even a dime” during the 60-day negotiation period.

“There are effectively two competing narratives around frozen funds,” Alex Vatanka, a senior fellow at the Middle East Institute, told Fox News Digital.

“The release of frozen assets is not just an economic issue. It will be one of the main tests of political trust between Tehran and Washington and probably one of the first major implementation disputes in the coming weeks,” Vatanka said. he added.

Paragraph 11 of the Memorandum of Understanding states that the United States is committed to “making fully available” restricted and frozen Iranian funds.

But the agreement ties the release of any funds to a step-by-step process based on compliance, rather than providing immediate, unrestricted access.

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The US delegation, including Steve Witkoff, JD Vance and Jared Kushner, arrived in Switzerland on Sunday. (Nathan Howard/Pool/REUTERS)

“First of all, there is serious uncertainty about the total amount of Iranian assets frozen abroad,” Vatanka said. he said.

“Iranian officials often talk of a figure above $100 billion, while Western estimates range higher. However, immediate negotiations appear focused on securing access to roughly $24 to $25 billion as an initial tranche.”

Iran’s frozen assets are estimated at between $100 billion and $120 billion, and Iran is held under sanctions and financial restrictions in countries such as China, India, Iraq and South Korea. Wall Street Journal report.

Vatanka said the real dispute extends beyond the size of the payment.

“The real dispute is not about how much money Iran gets, but who controls how that money is spent.”

“While Iranian officials emphasize sovereignty over the funds, the United States is trying to maintain its influence by adding conditions to their use,” he added on Sunday, as negotiations continued.

Qatar’s Ministry of Foreign Affairs said in a statement about X that the talks aimed to reach a comprehensive and permanent agreement covering all elements of the framework.

Spokesperson Majed bin Mohammed Al Ansari said technical teams are negotiating the final agreement, while oversight groups will monitor implementation and monitor progress.

According to reports, the US and Qatar are exploring a mechanism to funnel the initial $6 billion into purchasing humanitarian aid, including food and medicine.

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In this photo, Hezbollah terrorists are seen with rifles in their hands. A “terrorist network” financed and operated by Hezbollah and Iran has been foiled in the United Arab Emirates, according to the report. (Fadel Itani/NurPhoto via Getty Images)

But Western intelligence officials worry that unfrozen funds could be diverted to regional conflicts rather than local development projects.

Reuters He reported that Iran has already signaled to Hezbollah that increased financial support could continue if Tehran’s cash flow improves.

“This issue also has an important regional dimension,” Vatanka said. he said. “Iran has promised to direct some of these reconstruction funds to support its weakened proxy network in Lebanon.”

“The United States insisted that Iran could not use its unfrozen assets to finance terrorist organizations and warned that access to funds would be revoked if Tehran violated the terms of the agreement.”

Vatanka said both sides were divided on the broader purpose of the agreement.

“Tehran is offering about $25 billion in cash to be gradually released and invested in rebuilding the country’s infrastructure, with officials talking about roads, airports, transport corridors and projects that visibly benefit ordinary Iranians.”

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“But Washington seems to be defining something much narrower,” Vatanka added.

“U.S. officials have stated that rather than granting unrestricted access to Tehran, they want the funds to be released through controlled mechanisms primarily for humanitarian aid and other approved civilian procurement.”