Iran Demands Release of All Frozen Assets as US Offers Partial Unfreeze in Blocked Talks
Tehran insists on full access to billions held abroad, calling frozen funds a “legitimate right unjustly taken”—but Washington reportedly refuses to release more than 25% under current terms.
TEHRAN / WASHINGTON — Iran has formally demanded that the United States release all Iranian assets frozen abroad, a long-standing core condition for any lasting peace agreement, as diplomatic efforts to end the war stall over fundamental disagreements on sanctions, reparations, and the future of the Strait of Hormuz.
“Regarding the unfreezing of Iranian assets, this can be viewed as Iran’s demand — not just a condition. This is an absolutely legitimate right. We do not expect the other side to simply grant us money; this is a right that was unjustly taken from Iran,” Iranian Foreign Ministry spokesman Esmail Baqaei told a news briefing in Tehran on Monday .
Baqaei emphasized that the removal of sanctions and the release of assets frozen for years in various banks are core demands “consistently raised by Iran’s negotiators in each round of talks with the United States” . The comments came as Iran confirmed it had submitted its formal response to a new US peace proposal, with exchanges continuing through Pakistani mediators .
The Stakes: Billions in Limbo
The exact value of Iran’s frozen assets remains unclear, though independent estimates place the total at well over $100 billion. The funds include:
| Category | Details |
|---|---|
| Direct US assets | Funds immobilized directly in American banks |
| Foreign-held assets | Reserves restricted abroad under US secondary sanctions |
| Oil revenues in escrow | Payments for crude held in various jurisdictions |
| Central bank reserves | Blocked due to sanctions designations |
Approximately $6 billion of these funds are currently held in Qatar. Those assets were originally transferred there in September 2023 under a US-Iran prisoner swap mediated by Doha, with the understanding that the money would be limited to humanitarian purchases vetted by the US Treasury . However, following the October 7, 2023 attacks on Israel, the administration of then-President Joe Biden re-froze the funds, and they have remained inaccessible since .
The freeze on Iranian assets extends beyond traditional banking. On April 27, 2026, the US Treasury’s Office of Foreign Assets Control (OFAC) designated two Tron blockchain addresses linked to the Central Bank of Iran, and Tether subsequently froze more than $344 million in USDT held in those wallets .
US Position: No More Than 25%
Despite Iran’s insistence on full access, Washington has so far refused to release “even 25 percent” of Iran’s frozen assets abroad, according to Iranian media reports citing US conditions outlined in the latest peace proposal .
The US five-point conditions reportedly include:
| US Condition | Details |
|---|---|
| Nuclear limits | Only one Iranian nuclear facility to remain operational |
| Uranium transfer | 400 kg of enriched uranium to be transferred to the US |
| No reparations | Refusal to pay any compensation for war damage |
| Asset freeze | Withholding release of Iranian frozen assets (less than 25%) |
| War linkage | Cessation of hostilities conditioned on negotiation outcomes |
US officials have not publicly confirmed these terms, but Iranian media outlets—including Fars and Mehr—have reported them consistently following the latest exchange of proposals through Pakistani mediation .
A Modest Concession? Oil Sanctions Waiver
There has been one potential shift in the US position, though it falls far short of Iran’s demands. According to Iran’s Tasnim news agency, citing a source close to the Iranian negotiating team, “contrary to previous texts, the Americans agreed in a new text to waive oil sanctions during the negotiation period” .
The US has reportedly proposed a temporary waiver of OFAC sanctions on Iran’s oil sector “until a final understanding is reached,” according to the report . This would represent a significant—if temporary—concession, allowing Iran to resume oil exports while talks continue. However, Iran has consistently demanded the permanent lifting of all sanctions, not temporary waivers, as part of any final agreement .
A senior Iranian source told Oman Observer that Washington has so far “only agreed to free one quarter of those assets according to a phased timetable,” while Iran wants the US to “reconsider both positions” on assets and nuclear activity .
The Legal Framework: Legitimate Right or Bargaining Chip?
Iran frames the asset release as a matter of legal right rather than diplomatic concession. Foreign Ministry spokesman Baqaei was explicit on this point: “This is an absolutely legitimate right. We do not expect the other side to simply grant us money; this is a right that was unjustly taken from Iran” .
The frozen assets originate from multiple sources:
- Oil revenues held in escrow accounts in various countries following US sanctions reimposed in 2018
- Central bank reserves blocked due to sanctions designations
- Funds held in foreign banks that ceased processing Iranian transactions under US pressure
Most of the assets were frozen during the Trump administration’s first term (2017-2021), when the US withdrew from the Joint Comprehensive Plan of Action (JCPOA) nuclear deal and reimposed sanctions on Iran’s financial and energy sectors .
Iranian negotiators have consistently argued that because the funds are Iranian property—not subject to any criminal forfeiture or legal judgment—their continued freezing amounts to illegal seizure under international law. The US maintains that sanctions are a legitimate tool of foreign policy and that assets will remain frozen until Iran addresses the full range of US concerns, including its nuclear program and regional activities .
Linkage to the Strait of Hormuz
Iran has explicitly linked the asset freeze issue to control of the Strait of Hormuz, the strategic waterway through which approximately 20 percent of the world’s oil normally passes.
In its latest peace proposal, Iran demanded “recognition of Iran’s sovereignty over the Strait of Hormuz” as a key condition for any agreement . The proposal also called for an end to the US naval blockade on Iranian ports—implemented on April 13—and the reopening of the strait to commercial shipping under Iranian management .
Earlier reports indicated that any release of frozen assets was “directly linked to ensuring safe passage through the Strait of Hormuz” . This linkage gives Iran significant leverage: the strait remains largely closed to normal commercial transit, and reopening it would be a major US objective.
On Monday, Iran’s Supreme National Security Council formally announced the creation of the Persian Gulf Strait Authority (PGSA) , a new body designed to manage traffic and potentially charge tolls for passage—a move that Washington has rejected as illegal and provocative.
War Reparations: Another Sticking Point
In addition to asset release, Iran is demanding war reparations from the United States. The demand is based on Iran’s characterization of the US-Israeli strikes that began on February 28 as “illegal and baseless” aggression .
The US has categorically refused, with Iranian media reporting that Washington’s peace proposal includes a firm refusal “to pay any compensation or damages” . This stance has been described by Iranian media as a major obstacle to progress, with Mehr news agency reporting that “the United States, offering no tangible concessions, wants to obtain concessions that it failed to obtain during the war, which will lead to an impasse in the negotiations” .
Ongoing Diplomatic Exchanges
Despite the wide gaps, diplomatic channels remain open. Iran confirmed on Monday that it had submitted its response to the latest US proposal, with exchanges continuing “through the Pakistani mediator” .
A fragile ceasefire brokered by Pakistan took effect on April 8, halting major hostilities . However, talks held subsequently in Islamabad failed to produce a lasting agreement, and US President Donald Trump later extended the truce indefinitely while threatening Iran with resumed military action if it does not accept American terms .
The path to any deal remains blocked by fundamental disagreements:
| Issue | Iran’s Position | US Position |
|---|---|---|
| Frozen assets | Full release | Less than 25%, phased |
| Sanctions | Permanent lifting | Temporary waivers possible |
| Reparations | Required | Refused |
| Nuclear program | Right to enrich | One facility only; uranium transfer |
| Strait of Hormuz | Iranian sovereignty | International waterway |
| War on all fronts | Immediate end | Conditioned on negotiations |
Looking Ahead
With both sides holding firm on core demands, the prospects for a breakthrough appear limited. Iran has shown no willingness to abandon its demand for full asset release, framing it as a matter of legal right rather than diplomatic bargaining. The US has shown no willingness to concede more than a partial unfreeze, with conditions attached.
The temporary oil sanctions waiver, if confirmed, would represent a modest concession—but falls far short of Iran’s demand for permanent sanctions lifting. For now, the frozen assets remain frozen, the strait remains closed, and the war remains paused rather than resolved.
Frequently Asked Questions (FAQs)
Q1: How much money does Iran have frozen abroad?
A: Estimates vary, but independent analyses suggest the total exceeds $100 billion. This includes funds immobilized directly in the US, assets restricted abroad under US secondary sanctions, oil revenues held in escrow accounts, and central bank reserves blocked due to sanctions. Approximately $6 billion is held in Qatar, and more than $344 million in cryptocurrency was recently frozen .
Q2: What is Iran’s official position on these frozen assets?
A: Iran considers the frozen assets a “legitimate right unjustly taken” and has demanded their full release as a core condition for any lasting peace agreement. Foreign Ministry spokesman Esmail Baqaei stated that this is “not just a condition” but “an absolutely legitimate right” that Iranian negotiators have raised in every round of talks .
Q3: What has the US offered regarding frozen assets?
A: According to Iranian media reports citing the latest US peace proposal, Washington has refused to release “even 25 percent” of Iran’s frozen assets. A senior Iranian source indicated that the US has so far “only agreed to free one quarter of those assets according to a phased timetable” .
Q4: Has the US made any concessions on sanctions?
A: There are unconfirmed reports that the US has agreed to a temporary waiver of oil sanctions during the negotiation period. Iran’s Tasnim news agency, citing a source close to the negotiating team, reported that Washington’s latest proposal included a waiver of OFAC sanctions on Iran’s oil sector until a final understanding is reached . However, Iran has demanded permanent lifting of all sanctions, not temporary waivers.
Q5: Is Iran also demanding war reparations?
A: Yes. Iran has demanded that the United States pay compensation for war damage, describing the US-Israeli strikes that began on February 28 as “illegal and baseless” aggression. The US has categorically refused to pay any compensation or damages .
Q6: How are these issues linked to the Strait of Hormuz?
A: Iran has explicitly linked the release of frozen assets to control of the Strait of Hormuz. Earlier reports indicated that unfreezing assets is “directly linked to ensuring safe passage through the Strait of Hormuz” . Iran’s peace proposal demands “recognition of Iran’s sovereignty over the Strait of Hormuz” and an end to the US naval blockade .
Q7: What is the status of ceasefire talks?
A: A fragile ceasefire brokered through Pakistani mediation took effect on April 8. However, talks in Islamabad failed to produce a lasting agreement, and US President Donald Trump later extended the truce indefinitely. Diplomatic exchanges continue through Pakistani mediators, but fundamental disagreements remain .
Q8: Could the deadlock lead to renewed fighting?
A: Both sides have warned of the possibility. Iranian armed forces spokesman Abolfazl Shekarchi has warned the US against resuming attacks, and Foreign Ministry spokesman Baqaei stated that Iran is “fully prepared for any eventuality” . Trump has previously threatened that the ceasefire is “on massive life support” and warned Iran that “the clock is ticking.”
This is a developing story. Reflecto News will continue to provide updates on the status of Iran’s frozen assets, the ongoing diplomatic exchanges through Pakistani mediation, and any movement in the stalled peace talks.