Iran is demanding the release of billions of dollars in frozen overseas assets as part of a proposed ceasefire framework with the United States, with Tehran insisting on access to $12 billion immediately upon signing and a further $12 billion within 60 days. The demand has emerged as a major sticking point in negotiations, with Iranian officials framing the release of frozen funds as a prerequisite for demonstrating U.S. goodwill and a test of trust between the two nations. 'This is our own money, not America's money,' said Mohsen Rezaei, military adviser to Iran's Supreme Leader.
The negotiations come against the backdrop of a devastating war that began on February 28, 2026, when the United States and Iran first exchanged military strikes.The conflict has disrupted global oil supplies, with hundreds of tankers stuck inside the Gulf and a U.S. naval blockade restricting Iranian ports. A 14-point draft memorandum of understanding, published by Iran's semi-official Mehr News Agency, outlines the proposed terms, including an 'immediate and permanent' cessation of hostilities on all fronts, followed by 60 days of negotiations toward a final agreement.
Frozen Assets at the Heart of the Deal
According to Iranian and western sources familiar with the negotiations, Iran currently has approximately $100 billion in assets frozen in banks worldwide due to U.S. sanctions. The draft memorandum published by Mehr calls for the release of $24 billion in frozen Iranian assets during the 60-day negotiating period, with half of the funds to be made available before final negotiations begin. 'Iran wants $6 billion to $12 billion of its frozen funds to be released to Tehran, while Washington wants to release funds in stages for humanitarian goods and rejects returning funds to Iran outright,' one Iranian source said.
A senior European official confirmed that negotiations are focusing on the technical details and the financial amount — 'the level of liquidity available to Iran.' A U.S. source also confirmed that messages are still being exchanged and that a political understanding has been reached, but the mechanism around frozen funds is still being ironed out.
U.S. Rejection and Political Concerns
U.S. officials have pushed back against claims that Iran will receive billions in frozen funds before negotiations begin. On June 14, a U.S. official told CNN that reports of an upfront release were 'completely untrue.' President Trump faces a difficult political calculation: for years, he has criticized former President Barack Obama for transferring $1.7 billion to Iran as part of the 2015 nuclear deal and attacked the Biden administration for allowing Iran access to approximately $6 billion in frozen assets under a 2023 prisoner exchange agreement. Analysts believe that if Trump approves advance payments to Iran, he could face criticism for repeating policies he previously condemned vehemently.
Vice President JD Vance acknowledged on June 18 that the release of frozen Iranian assets remains one of the key unresolved issues in the negotiations. As part of the 14-point memorandum, the Trump administration promises to 'make fully available for use the frozen or restricted funds and assets of the Islamic Republic of Iran.' However, Vance said negotiators have yet to determine how much will be unfrozen, or when and how the funds would be released. 'The amount of money, I honestly don't know. I've heard numbers north of 100 billion dollars. I've actually heard numbers north of 200 billion dollars,' Vance told reporters.
Wider Sanctions Relief and Reconstruction
Beyond the release of frozen assets, the draft memorandum includes significant sanctions relief provisions. According to Mehr, the U.S. would suspend sanctions on Iranian oil, petrochemical products, and derivatives, grant Iran full access to its financial resources, and eventually lift all primary and secondary U.S. sanctions. The draft also calls for the U.S. and its allies to present plans for rebuilding Iran worth at least $300 billion.
The agreement also addresses the strategic Strait of Hormuz, through which one-fifth of the world's oil passes. Under the proposed terms, the strait would be reopened within 30 days in coordination with Iran. The U.S. military has already begun lifting its naval blockade of Iranian ports, with more than 12.5 million barrels of oil flowing through the strait on June 17 alone.
Iran's Economic Imperative
For Iran, the release of frozen assets is not merely a negotiating point but an economic necessity. The country's economy is under severe pressure from sanctions, and Iranian officials have emphasized that access to its own financial resources is critical. According to Iranian sources, the clerical establishment's priority is not a comprehensive settlement but a framework that can restore 'minimum breathing space' by unlocking frozen assets and ending the war.
Iranian officials have warned that without progress on frozen assets, negotiations could collapse. On June 6, Mohsen Rezaei told CNN that talks were deadlocked over the $24 billion demand and warned that the U.S. would 'enter into a dark corridor' should it resume fighting. 'If he (Trump) wants to reach an agreement with Iran, this $24 billion is a test of trust that Iran wants to have with Trump — this is a test that America must pass, and the path will be opened,' Rezaei said.
The 60-day negotiating period officially began on June 18 and is set to expire on August 17, when both sides hope to reach a permanent agreement. Whether that deadline will be met — and whether Iran will gain access to its frozen assets — remains uncertain, but the outcome will have profound implications for global financial restrictions, sanctions enforcement, and the stability of the Middle East.
