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White House Denies Unfreezing $6B Iranian Funds Amid Ceasefire Talks

The White House has formally dismissed a report claiming the U.S. consented to unblock Iranian funds held in Qatari and international banks. This denial comes as American and Iranian officials engage in high-stakes ceasefire negotiations in Islamabad. The $6 billion in question, originally frozen in 2018, was briefly slated for release in a 2023 prisoner swap before being refrozen after the October 7 attacks on Israel. The funds, from Iranian oil sales to South Korea, can only be used for humanitarian purchases under strict U.S. Treasury supervision.

Key Points: US Denies Releasing Blocked Iranian Funds in Peace Talks

  • White House denies report of approving release
  • Talks ongoing in Islamabad for ceasefire
  • $6B blocked since 2018, refrozen after Oct 7 attacks
  • Funds restricted to humanitarian use under US oversight
2 min read

White House rejects report of releasing blocked Iranian funds amid Islamabad peace talks

White House rejects report of unfreezing $6B in Iranian assets as US-Iran envoys meet in Islamabad for ceasefire negotiations.

"welcoming the move as a tangible demonstration of seriousness from the United States - Iranian Official"

Islamabad, April 11

The White House on Saturday dismissed a report suggesting that the United States had consented to the "release of Iranian capital" previously "blocked in Qatari and various international financial institutions."

This official denial arrives as American and Iranian representatives convene in Islamabad for high-stakes negotiations aimed at brokering a ceasefire, reported CBS.

The controversy follows a report, which quoted a high-ranking Iranian official claiming that Washington had signalled its approval to unfreeze the assets. According to the news agency, the source had "welcoming the move" as a "tangible demonstration" of "seriousness" from the United States in its "pursuit of a formal agreement."

The report further cited an anonymous source who stated that the decision to release the funds was "directly linked to ensuring safe passage through Strait of Hormuz."

Providing historical context to the dispute, the USD 6 billion in question was first blocked in 2018 and was originally slated for unfreezing in 2023 under the terms of a US-Iranian prisoner exchange. However, the administration of President Joe Biden moved to refreeze the capital in the aftermath of the October 7, 2023, strikes on Israel carried out by the Palestinian militant group Hamas, an ally of Tehran.

At that juncture, US authorities asserted that Iran would be denied access to the finances "for the foreseeable future," emphasising that Washington maintained the authority to "completely freeze the account" if deemed necessary. These assets originated from Iranian petroleum exports to South Korea but were stalled in South Korean financial institutions after President Donald Trump withdrew from the nuclear pact and reinstated sanctions during his initial term.

The funds were eventually relocated to bank accounts in Qatar following a Doha-mediated prisoner swap in September 2023. That agreement facilitated the liberation of five US nationals imprisoned in Iran in return for the transfer of the money and the release of five Iranians detained in the US.

During that period, US officials clarified that the expenditure was "restricted to humanitarian use only." The established framework required the capital to be distributed solely to verified suppliers for the procurement of "food, medicine, medical equipment and agricultural goods" destined for Iran, all conducted under stringent "US Treasury oversight."

- ANI

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Reader Comments

P
Priyanka N
The report about the Strait of Hormuz is the key detail. A huge portion of our oil imports pass through there. Any threat to that shipping lane directly impacts our economy. The US denying the fund release is a relief for now.
A
Aman W
It's interesting that the talks are in Islamabad. Pakistan often positions itself as a mediator, but with its own close ties to China and historical links to the Gulf, I wonder about the real dynamics at play here. India should observe closely.
S
Sarah B
While the focus is on US-Iran, let's not forget the humanitarian angle mentioned. If the funds are strictly for food and medicine under oversight, that's a separate issue from geopolitics. Civilians shouldn't suffer for political stalemates.
V
Vikram M
The constant freezing and unfreezing based on global events shows how fragile international finance can be. For a country like India trying to increase trade, it's a lesson in the importance of diversified partnerships and payment mechanisms.
K
Kiran H
With respect, I have to criticize the reporting a bit. The article jumps from the White House denial to a lot of historical context, but it doesn't clearly state what the original Iranian report *actually* claimed. A little more clarity on the source of the controversy would be helpful for readers.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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