The fate of $24 billion in frozen Iranian funds has emerged as a key sticking point in peace talks with the US, with Qatar hosting discussions on a potential peace deal.
The funds were described by pro-regime media in Iran as the “last serious disagreement” before negotiations with the US can progress to the next stage.
Top Iranian negotiator Mohammad Bagher Ghalibaf was in Qatar to press for a $12 billion release to be included in the initial “memorandum of understanding” taking shape between Iran and the US. Another $12 billion could be transferred later.
Qatar denied it had offered the funds to Iran, hinting at difficult talks on the issue. Some Iranian assets have been deposited in the Gulf state since 2023, as part of a prisoner swap deal.
What are Iran's frozen funds?
The issue dates back years. Under successive presidents, the US has imposed sanctions on Iran over its secretive nuclear programme, its support for militants such as Hezbollah, and other issues. The UN has also adopted sanctions.
The measures included the freezing of Iranian funds that were sitting in US accounts – meaning their owners in Tehran cannot access them. The Iranian central bank, for example, was believed to have $1.75 billion in bonds in a New York bank account.
Flexing its superpower muscles, the US has also ensured the freezing of Iranian funds in other countries, including Japan, South Korea, Luxembourg and Iraq. Iranian oil revenue believed to be worth more than $20 billion is held in China, with sanctions making it difficult for the money to be transferred.
In total, the value of Iran's frozen funds has been estimated as high as $120 billion.
What are the funds in Qatar?
In 2023, Qatar announced that Iranian funds worth about $6 billion had been transferred from South Korea and deposited in Doha.
The transfer was part of a deal brokered by Qatar in which Iran released five detained Americans. The Iranian government, though, says it has been denied full access to the funds.
Iran now says the aim of its talks in Qatar is to release $24 billion, a far higher figure which it did not explain. It could include funds held in other countries.
Tasnim news agency said Iran wants $12 billion to be transferred immediately once an agreement is signed with the US. Another $12 billion would be paid within 60 days under the Iranian proposal.
What could happen next?
Iran has portrayed the funds as a red line in peace talks, as it seeks concessions in return for reopening the Strait of Hormuz. One source told Fars news agency that “no agreement is possible until the agreed-upon funds are deposited”.
While Pakistan has been the main mediator in US-Iran talks, the focus on the funds has shifted attention to Qatar. As well as Mr Ghalibaf, Iran's central bank chief Abdolnaser Hemmati is believed to have travelled to the Gulf state.
Qatari Foreign Ministry spokesman Majed Al Ansari said reports the Gulf state had “offered” $12 billion to Iran to secure a deal were “simply not true”. He said they were “circulated by parties attempting to sabotage the deal”.
Iranian media played down that denial, saying the funds belonged to Iran and could not be “offered” by Qatar.
There were claims in Israeli media that the release of funds could be tied to Iran handing over enriched uranium. The nuclear issue is one of the most contentious points in the talks, alongside the frozen assets and the Strait of Hormuz.
US President Donald Trump could face resistance in his own party if he agrees a deal. Prominent Republicans including Ted Cruz and Lindsey Graham have raised concerns about the deal being mooted.
