The Trump administration is developing a financial arrangement with Qatar that would allow Iran to access approximately $6 billion in frozen oil revenues for the purchase of food, medicine, and other humanitarian supplies, marking one of the first tangible incentives included in the 14-point memorandum of understanding signed this week between Washington and Tehran.

According to individuals familiar with the negotiations, the proposal remains incomplete and still requires approval from Iranian officials. Under the framework being discussed, transactions would be conducted through Iran’s central bank, creating a model that could eventually be expanded to unlock portions of the estimated $100 billion in Iranian assets frozen around the world.

The initiative would release funds that Tehran has spent years demanding access to and represents one of the most significant economic elements of the new agreement.

Iranian officials are reportedly pressing for substantially larger sums. Tehran is seeking at least $24 billion in initial asset releases, while state-linked media outlets have indicated that Iranian leaders expect roughly $12 billion to become available during the 60-day interim period established by the agreement, with future payments dependent on progress in negotiations.

As part of the memorandum, the United States agreed to work toward making Iran’s frozen assets available for use and to establish a mechanism governing how those funds would be released.

The proposed Qatar-based channel is not without precedent.

In 2023, the Biden administration authorized the transfer of $6 billion in Iranian oil proceeds from South Korea to accounts in Qatar as part of a prisoner exchange agreement. Following the Hamas attack on Israel on October 7, however, those funds were frozen once again.

Efforts to revive discussions surrounding the money gained momentum in late May when Iranian Parliament Speaker Mohammad Bagher Ghalibaf traveled to Doha with a delegation, helping pave the way for this month’s broader agreement between the United States and Iran.

The financial negotiations are unfolding even as tensions surrounding the deal continue to mount.

Iranian Supreme Leader Mojtaba Khamenei, who assumed power following the assassination of his father earlier this year, criticized the agreement on Thursday in a series of posts on X, arguing that President Trump had sought the deal from a position of weakness and saying he approved it only after receiving assurances from Iranian President Masoud Pezeshkian.

Trump responded forcefully the following day on Truth Social.

“We didn’t meet out of desperation, Iran did. They are FINISHED! We’ll play out the 60 days. They get no money, not ten cents!”

Meanwhile, one of the key foundations of the agreement remains in doubt as the Strait of Hormuz continues to face disruptions.

The Islamic Revolutionary Guard Corps has stated that the strategic waterway will remain closed as long as Israeli military operations continue in southern Lebanon. At the same time, Swiss officials confirmed that the next round of U.S.-Iran negotiations scheduled to take place in Burgenstock has been postponed.

Vice President JD Vance had been expected to head the American delegation at those talks but ultimately did not make the trip. The White House attributed the change to logistical complications.

The prospect of releasing billions of dollars to Tehran has generated criticism from both Republicans and Democrats, many of whom argue that Iran is being rewarded before making any verifiable concessions regarding its nuclear program.

Senate Minority Leader Chuck Schumer was among the deal’s most vocal critics, saying the United States “is worse off than before the war started,” and characterizing the agreement as a surrender to Iranian demands.

Supporters of the administration’s approach argue that the proposed mechanism contains strict safeguards. They note that the funds would be limited to humanitarian purchases exempt from sanctions, that Washington would be able to monitor how the money is spent, and that any future asset releases would remain tied to Iranian compliance with obligations outlined in the memorandum, including requirements related to enriched uranium.

As of Saturday, the U.S. Treasury Department had not publicly issued any waiver authorizing the release of additional funds from the Qatari accounts, leaving the future of the plan uncertain as negotiations continue.

{Matzav.com}