JUST IN: Iranian Media Reports US Agreed to Release Frozen Assets During Islamabad Talks
Published on Reflecto News | World News | Diplomacy & Conflict
Iranian state media and senior officials are reporting that the United States has agreed to release billions of dollars in frozen Iranian assets as part of the ongoing negotiations in Islamabad, Pakistan. According to a senior Iranian source cited by Reuters, the US has agreed to unfreeze Iranian assets held in Qatar and other foreign banks—a move Tehran views as a critical sign of Washington’s “seriousness” in reaching a lasting peace agreement .
However, in a familiar pattern of contradictory statements that has come to define the early stages of the Islamabad talks, a US official swiftly denied the assertion, leaving the status of the asset issue in diplomatic limbo .
Iranian Sources: $6 Billion Tied to Strait of Hormuz
The senior Iranian source, who spoke to Reuters on condition of anonymity due to the sensitivity of the matter, welcomed the purported US move as a sign of “seriousness” in reaching a deal with Washington during the Islamabad talks . The source said the release of assets was one of Iran’s core demands “in messages conveyed to the US side” and that Tehran had received a US agreement to release the funds .
A second Iranian source specified that the United States had agreed to release $6 billion of frozen Iranian funds held by Qatar . According to the sources, unfreezing the assets was “directly linked to ensuring safe passage through the Strait of Hormuz,” which has been a central issue in the negotiations .
The senior source did not provide a total value for all assets that Washington reportedly agreed to unfreeze, suggesting the $6 billion figure may represent only a portion of a larger arrangement .
White House Denial: ‘No Agreement Reached’
Despite the claims from Tehran, a US official swiftly denied the assertion, telling Reuters that the White House has not agreed to release the assets . The denial came as Vice President JD Vance, who is leading the American delegation in Islamabad, continued meetings with Pakistani officials and Iranian negotiators .
Qatar’s Foreign Ministry did not immediately respond to requests for comment on the reported agreement .
The contradiction between Iranian claims and US denials follows a pattern seen throughout the early stages of the Islamabad talks. Just hours before the negotiations began, the White House had already pushed back on similar claims, stating that the US position on frozen assets had not changed .
The $6 Billion: A History of Frozen Funds
The $6 billion in question has a complex history dating back nearly a decade. The funds stem from Iranian oil sales to South Korea and had been blocked in South Korean banks after President Donald Trump reimposed sanctions on Iran in 2018—during his first term in the White House—and withdrew the United States from the Joint Comprehensive Plan of Action (JCPOA), the landmark nuclear deal between Iran and world powers .
| Timeline | Event |
|---|---|
| 2018 | Funds frozen in South Korean banks after Trump reimposes sanctions |
| September 2023 | Funds transferred to Qatari accounts as part of US-Iran prisoner swap |
| Post-October 7, 2023 | Funds re-frozen by Biden administration after Hamas attacks on Israel |
| April 2026 | Iran claims US agreed to release funds; US denies |
Under the September 2023 US-Iran prisoner swap mediated by Doha, the money was transferred to Qatari bank accounts. The prisoner swap involved the release of five US citizens detained in Iran in exchange for the funds’ release and the release of five Iranians held in the United States .
US officials said at that time that the money was restricted to humanitarian use only—to be disbursed to approved vendors for food, medicine, medical equipment, and agricultural goods shipped into Iran under US Treasury oversight .
However, following the October 7, 2023 attacks on Israel by Hamas—an Iran-backed group—the Biden administration again froze the funds, stating that Iran would not be able to access the money for the foreseeable future and that Washington retained the right to completely freeze the account .
Iran’s Preconditions: Assets and Lebanon
The asset release issue is one of two core preconditions that Iran has insisted must be fulfilled before negotiations can proceed in good faith. Parliament Speaker Mohammad Bagher Ghalibaf, who is leading the Iranian delegation in Islamabad, stated that two measures “mutually agreed upon between the parties” have yet to be implemented: a ceasefire in Lebanon and the release of Iran’s blocked assets prior to the commencement of negotiations .
The Iranian side discussed these preconditions with Pakistani Prime Minister Shehbaz Sharif ahead of their talks with US counterparts, according to Pakistani sources cited by Xinhua News Agency .
Other issues on Iran’s precondition list include:
- Payment for reconstruction
- Immediate stop of attacks, including in Lebanon
- Permission for civilian nuclear energy use
The Lebanese front remains a significant obstacle. Israel has explicitly stated that the US-Iran ceasefire does not apply to its operations against Hezbollah, while Iran insists that Lebanon is an “inseparable part” of any ceasefire agreement .
Trump’s Hardline Stance: ‘No Nuclear Weapon’
President Donald Trump, who has been monitoring the talks from Washington, has taken a强硬 stance on the negotiations, publicly stating that he does not care whether the talks go well or not and threatening to continue military action if Iran does not comply with US demands .
Asked what a good deal with Iran would look like, Trump told reporters: “No nuclear weapon. That’s 99 percent of it” .
Trump has also dismissed Iran’s leverage in the negotiations, posting on his Truth Social network that Iran has “no cards” other than “short-term extortion of the World by using International Waterways” .
The president has also vowed to have the Strait of Hormuz open “with or without” Iran’s cooperation, telling reporters: “We’re going to open up the Gulf with or without them… I think it’s going to go pretty quickly, and if it doesn’t, we’ll be able to finish it off” .
The Talks: ‘Make or Break’
The Islamabad talks, dubbed the “Islamabad Talks” by Pakistani officials, are proceeding at a slower pace than initially expected . According to Pakistani sources, the negotiations could last longer than anticipated as both sides work through complex issues .
| Delegation | Lead Representative |
|---|---|
| United States | Vice President JD Vance |
| Iran | Parliament Speaker Mohammad Bagher Ghalibaf |
| Pakistan (Mediator) | Prime Minister Shehbaz Sharif |
Sources: Bernama, Xinhua, multiple news reports
The two delegations are currently holding separate meetings with Pakistani officials at a five-star hotel in Islamabad to “make patch work” before any potential direct face-to-face talks between the two sides . Pakistani sources indicated that it remains unclear when the two delegations will sit face-to-face .
Prime Minister Shehbaz Sharif has described the current moment as a critical juncture, warning that the path ahead is even more difficult than securing the initial ceasefire .
“A temporary ceasefire has been announced, but now an even more difficult stage lies ahead: the stage of achieving a lasting ceasefire, of resolving complicated issues through negotiations. This is that stage which, in English, is called the equivalent of ‘make or break.'” — Prime Minister Shehbaz Sharif
The Iranian ambassador to Pakistan noted in a social media post that “it remains to be seen whether the US honors the mediation efforts of the host” .
Mutual Distrust: ‘Good Intentions but No Trust’
Both sides have approached the negotiations with deep skepticism, reflecting decades of mistrust between the two nations.
Ghalibaf, speaking upon his arrival in Islamabad, struck a cautious note about the prospects for successful negotiations.
“We have good intentions but we do not trust. Our experience in negotiating with the Americans has always been met with failure and broken promises.” — Mohammad Bagher Ghalibaf, Iranian Parliament Speaker
Vice President Vance, for his part, has expressed cautious optimism while also issuing pointed warnings to the Iranian delegation.
“If the Iranians are willing to negotiate in good faith, we’re certainly willing to extend the open hand. If they’re going to try to play us, then they’re going to find the negotiating team is not that receptive.” — Vice President JD Vance
What Comes Next
As the delegations continue their separate meetings with Pakistani mediators, several key questions remain unanswered:
| Question | Current Status |
|---|---|
| Has the US agreed to release frozen assets? | Iran says yes; US denies |
| Will a Lebanon ceasefire be included? | Iran demands it; Israel rejects it |
| When will direct talks begin? | Unknown; pace slower than expected |
| How long will negotiations last? | Possibly longer than anticipated |
The coming hours and days will determine whether the asset dispute can be resolved—and whether the “Islamabad Talks” can succeed where so many previous efforts have failed.
Frequently Asked Questions (FAQs)
1. What are Iranian media reporting about frozen assets?
Iranian media, citing senior officials, report that the United States has agreed to release frozen Iranian assets held in Qatar and other foreign banks as part of the Islamabad negotiations. A second Iranian source specified that the US agreed to release $6 billion held by Qatar .
2. Has the US confirmed this agreement?
No. A US official swiftly denied the assertion, telling Reuters that the White House has not agreed to release the assets .
3. Where did the $6 billion come from?
The funds stem from Iranian oil sales to South Korea and were blocked in 2018 after President Trump reimposed sanctions on Iran. They were transferred to Qatari accounts as part of a 2023 prisoner swap but were frozen again after the October 7, 2023 attacks on Israel .
4. What are Iran’s preconditions for the talks?
Iran has demanded two preconditions be met: a ceasefire in Lebanon and the release of its frozen assets. Other issues on Iran’s list include payment for reconstruction, an immediate stop to attacks, and permission for civilian nuclear energy use .
5. What is the status of the Lebanon ceasefire precondition?
Israel has explicitly rejected a ceasefire with Hezbollah, stating that the US-Iran ceasefire does not apply to Lebanon. An Israeli official said Israel “refused to discuss a ceasefire with the Hezbollah terrorist organization” .
6. What has President Trump said about the talks?
Trump has stated that he does not care whether the talks go well or not, threatened to continue military action, and declared that preventing Iran from obtaining nuclear weapons is “99 percent” of his objective. He has also vowed to open the Strait of Hormuz “with or without” Iran’s cooperation .
7. How long will the talks last?
Pakistani sources indicate the pace of the talks is slower than expected and they could last longer than initially anticipated .
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