SouthernWorldwide.com – A significant dispute over billions of dollars in frozen Iranian funds is poised to challenge the stability of a nascent interim agreement between the U.S. and Iran, according to a regional analyst.
This disagreement is surfacing as both Washington and Tehran commence the implementation of a memorandum of understanding that was signed on June 17. Negotiators have convened for their initial round of discussions in Bürgenstock, near Lucerne, Switzerland.
Iran’s President Masoud Pezeshkian indicated Tehran’s expectations early Sunday, stating that “$6 billion of our funds in Qatar will be returned. Trump, who tried to deny Iran its rights, acknowledged them in his recent speech.”
The roots of this dispute can be traced back to discussions held at the G7 summit in Évian-les-Bains, France, where world leaders deliberated on the matter.
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President Donald Trump asserted, “We have taken their money, it isn’t our money, it is their money, and we froze it. At a certain point in time, I guess we’re going to have to give it back.”
He further emphasized that any access to these funds remains strictly contingent. Trump wrote on Truth Social that Iran would receive “not ten cents” during the 60-day negotiation period if it failed to meet its commitments.
“Releasing frozen assets is not simply an economic question. It is one of the central political tests of trust between Tehran and Washington and will likely become one of the first major implementation disputes in the weeks ahead,” stated Vatanka.
Paragraph 11 of the MOU framework outlines that the United States “undertakes to make fully available” restricted and frozen Iranian funds.
However, the agreement stipulates a step-by-step process for the release of funds, tied to compliance, rather than granting immediate and unrestricted access.
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“First, there remains considerable uncertainty over the total amount of Iranian assets frozen abroad,” Vatanka noted.
“Iranian officials often speak of more than $100 billion, while Western estimates range higher. The immediate negotiations, however, appear focused on securing access to roughly $24 billion to $25 billion as an initial tranche.”
Estimates suggest that Iran’s frozen assets range from $100 billion to $120 billion, held under sanctions and financial restrictions in countries such as China, India, Iraq, and South Korea, according to reports from the Wall Street Journal.
Vatanka highlighted that the core dispute extends beyond the monetary amount involved.
“The real dispute is not simply about how much money Iran receives, but who ultimately controls how it is spent.”
“Iranian officials are emphasizing sovereignty over the funds, while the United States is trying to preserve leverage by attaching conditions to their use,” he added as the talks commenced on Sunday.
In a statement released on X, Qatar’s Foreign Ministry indicated that the talks aim to achieve a comprehensive and lasting agreement encompassing all aspects of the framework.
Spokesman Majed bin Mohammed Al Ansari confirmed that technical teams are negotiating the final deal, with oversight groups tasked with monitoring implementation and tracking progress.
The U.S. and Qatar are reportedly exploring a mechanism to allocate an initial $6 billion towards humanitarian purchases, including food and medicine.
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Nevertheless, Western intelligence officials remain concerned about the potential diversion of unfrozen funds to regional conflicts rather than domestic development projects.
Reuters reported that Iran has already communicated to Hezbollah that increased financial support could resume if Tehran’s cash flow improves.
“This issue also has an important regional dimension,” Vatanka commented. “Iran has pledged to direct a portion of those reconstruction funds toward supporting its weakened proxy network in Lebanon.”
“The United States has insisted that Iran cannot use any unfrozen assets to fund terrorist organizations, warning that access to the funds would be revoked if Tehran violates the terms of the agreement,” he added.
Vatanka further stated that the two sides remain divided on the broader objectives of the agreement.
“Tehran is presenting the roughly $25 billion as money that will be released gradually and invested in rebuilding the country’s infrastructure, with officials talking about roads, airports, transport corridors and projects that visibly benefit ordinary Iranians.”
“Washington, however, appears to be describing something much narrower,” Vatanka elaborated.
“U.S. officials have indicated they want the funds released through controlled mechanisms, primarily for humanitarian and other approved civilian purchases, rather than giving Tehran unrestricted access.”
