The fragile ceasefire in the Middle East faces renewed pressure as Iran accuses the United States of violating the agreement by striking targets near the Strait of Hormuz. However, the Trump administration has downplayed clashes, as both sides continue exchanging proposals centred on a memorandum of understanding for broader negotiations.
Behind headline issues, a source close to negotiations told Iran's Fars news agency that the last sticking point concerns some $24bn (£17.85bn) in Iranian funds frozen in banks worldwide. Iran seeks to recoup around a quarter of the withheld payments, but Trump allies warn such a concession could weaken US leverage.
Iran has long been burdened by Western sanctions, limiting its oil and gas revenues. US secondary sanctions have led companies to suspend payments to Tehran due to international banking restrictions. For example, Iran seeks the release of $6bn held in Qatar from oil sales to South Korea blocked after President Trump reimposed sanctions in 2018.
Trackers estimate around $100bn in frozen assets globally, mostly in China, India, Japan, Qatar and Iraq. A source told Iran International that Iran seeks the immediate release of $12bn in frozen assets held in Qatar as a precondition for talks. An insider then told Tasnim news agency that Iran wanted $24bn released under a memorandum of understanding.
Iran's top negotiator, Mohammad Bagher Ghalibaf, travelled to Qatar to agree on a mechanism for this demand. Fars cited a source saying the funds were the last sticking point, while ISNA called the negotiations 'overall positive'. An Iranian official told The Telegraph: 'Our demand is the release of the frozen assets – not in the future, but right now.'
