US Says $12 Billion in Iranian Assets Will Buy US Food as Tehran Rejects Curbs
Updated
Updated · Al Jazeera English · Jun 25
US Says $12 Billion in Iranian Assets Will Buy US Food as Tehran Rejects Curbs
3 articles · Updated · Al Jazeera English · Jun 25
Summary
$12 billion in frozen Iranian funds could be released under the new US-Iran talks, but Washington says the money would sit in US-controlled escrow and be spent only on American food and medical supplies.
Iran flatly disputes that condition, saying the assets must be released with “absolute liberty” for Tehran to buy whatever goods it needs, based on price and quality rather than US dictates.
The clash exposes a key gap in negotiations after last week's memorandum of understanding, with analysts warning any spending restrictions could trigger lengthy bargaining and face resistance in Congress and from companies.
For Trump, the proposal could deliver a windfall to US farmers hit by the China trade war, especially soybean exporters, while framing sanctions relief as humanitarian aid rather than a direct cash transfer to Iran.
Even if a final deal is reached, broader trade revival looks limited: total US-Iran trade was just $838 million in 2024, mostly services and sanction-exempt goods such as medicines and agricultural products.