US, Qatar weigh releasing billions in frozen cash to Iran: Report

The US and Qatar are working on a plan to allow Iran to access frozen funds especially for humanitarian spending.

As reported by the Wall Street Journal, this plan will begin with releasing $6 billion to Iranian authorities held in Qatar, specifically for purchasing food, medicine and other humanitarian goods.

The cash ordered by Iran’s central bank would be drawn from frozen Iranian assets, mainly cash from oil sales that has not been accessible due to sanctions.

According to the sources privy to the matter, this early financial incentive is the part of the recently signed deal to end the months-long conflict.

The US aims to use this mechanism to gain visibility into Iranian purchases and leverage over how Iran accesses its frozen cash.

According to Sanam Vakil, Middle East director at Chatham House, a London think tank, “Even limited asset releases function as both economic lifelines and political signals of de-escalation. They are one of the few concrete incentives Iran can secure with Washington to stabilize its currency and ease domestic economic pressure.”

This arrangement is viewed as a potential model for releasing additional tranches of the estimated $100 billion in Iranian assets frozen worldwide. For this to happen, there are certain conditions.

For instance, the US has committed to making these assets fully available under the conditions of engaging in nuclear talks and showing compliance with the MoU signed by Washington and Tehran on Wednesday.

With this signed agreement, both parties have entered a 60-days extendable window to finalize the final deal along with nuclear negotiations.

Given the severe economic crisis faced by Iran, accessing these funds is viewed as critical economic lifeline to stabilise its economy.

Despite the signed agreement, public tensions remain high. President Trump recently stated, "They get no money, not ten cents!" following comments from Supreme Leader Khamenei, who claimed Trump signed the deal out of desperation highlighting the fragility of the deal.