Iran has reportedly made the release of $24 billion in frozen assets a key condition for any future agreement with the United States, with a senior adviser to Iran’s supreme leader warning that a return to military confrontation could dramatically expand the scope of regional conflict.

Mohsen Rezaei, a top military adviser to Supreme Leader Ayatollah Mojtaba Khamenei, told CNN on Friday that negotiations between Tehran and Washington have reached an impasse and that it is now up to President Donald Trump to move the process forward.

Rezaei said “the negotiations are at a deadlock and (US President Donald) Trump must break this deadlock,” adding that “the ball is in Trump’s court.”

According to the report, Iran is seeking the release of the funds in two stages. Tehran wants $12 billion transferred immediately following approval of an interim ceasefire agreement, with the remaining $12 billion to be released at a later stage.

American officials, however, have reportedly been reluctant to approve the release of the assets, concerned that doing so would surrender one of Washington’s most significant sources of leverage. Trump has repeatedly maintained that any new arrangement with Iran must be substantially tougher than the nuclear agreement reached during the Obama administration in 2015.

During the CNN interview, Rezaei portrayed the asset release as a critical measure of whether genuine progress is possible between the two countries. He argued that freeing the funds could pave the way for improved relations in the future.

According to the adviser, “If he (Trump) wants to reach an agreement with Iran, this $24 billion is a test of trust that Iran wants to have with Trump – this is a test that America must pass and the path will be opened,” noting that “this is our own money, not America’s money.”

Rezaei also issued a warning about the consequences of renewed hostilities. He said that if fighting resumes, Iran would seek to broaden the conflict beyond the Persian Gulf, targeting American interests across a much wider geographic area, including strategic waterways stretching from the Strait of Hormuz to the Mediterranean and Indian Ocean regions.

He vowed, “We will give another dimension to the war by attacking these other American bases that we have been attacking so far,” though he simultaneously assessed that “the possibility of war is low.”

Asked about Trump’s recent comments suggesting that he and Khamenei “seem to be getting along well” and that he would be “honored” to meet the Iranian leader, Rezaei dismissed the likelihood of such a meeting taking place.

Avoiding queries regarding the Ayatollah’s physical health, Rezaei stated, “This will not happen, right now we are in the first stage of negotiations and Mr. Trump has brought the negotiations to a standstill. This will not happen.”

Rezaei also expressed doubts about the durability of any agreement reached with the current administration, citing Trump’s withdrawal from the 2015 nuclear accord in 2018 and accusing the president of employing “ambiguity” as a negotiating strategy.

He further warned that if diplomacy fails and any future conflict includes a ground invasion of Iran, the country possesses capabilities beyond its missile arsenal. According to Rezaei, “then the world will understand Iran’s true capabilities, because our land power is many times greater than our missiles.”

The comments come as the United States and Iran continue indirect negotiations aimed at limiting Tehran’s nuclear program and reducing tensions throughout the region. Despite months of discussions, no final agreement has yet been reached.

Earlier this week, Trump struck an optimistic tone regarding the talks and suggested a breakthrough could be imminent.

“I hear the negotiations with Iran are going very well. If a deal happens with Iran it could be done over the weekend,” Trump told reporters, adding that Iran is “close” to signing the papers.

Trump has also stated that he wants Iran’s enriched uranium stockpile transferred into American custody and indicated that he expects progress on that issue in the near future.

A central element of Trump’s negotiating position has remained unchanged throughout the talks: Iran will not be permitted to acquire nuclear weapons.

Reiterating that position on Thursday, Trump argued that the policies of Presidents Joe Biden and Barack Obama encouraged Iran’s pursuit of nuclear capabilities.

“The Obama deal, I terminated that or they would have had a nuclear…that was a road to a nuclear weapon. Our deal – if we make that deal and it’s going well but who knows – if we make that deal it’s the exact opposite. They will never have a nuclear weapon. I’m not going to let them have a nuclear weapon,” he stated.

{Matzav.com}