Trump unlocks Iran funds for food imports under 60-day nuclear deal

The US and Iran agreed Sunday to a 60-day roadmap that releases frozen Iranian assets into a US-controlled escrow account, with Tehran accepting full nuclear verification in exchange for humanitarian imports from American suppliers.

"We give the Americans' threats no weight whatsoever," Iranian Parliament Speaker Mohammad Bagher Ghalibaf said on X, after President Donald Trump warned Iran it "won't even make it back to your country" if the Strait of Hormuz remains closed.

The memorandum of understanding, signed virtually Wednesday, establishes a $300 billion Reconstruction and Development Fund, lifts the US naval blockade and issues waivers for Iranian oil sales, according to IRNA News Agency. Ships remain positioned for a potential re-imposition of the blockade, Trump said, as the Strait of Hormuz — which handles about 21 percent of global oil trade — reopened after Israeli attacks on Lebanon disrupted the talks.

The deal marks the most significant US-Iran diplomatic breakthrough since the 2015 Joint Comprehensive Plan of Action, though its durability hinges on whether Israel — which was excluded from the negotiations — escalates its military campaign. Israeli leaders have condemned the agreement, with former Defense Minister Avigdor Lieberman calling for Israel to build a ballistic missile force and overthrow the Iranian government.

The agreement emerged from quadrilateral talks in Switzerland involving US, Iranian, Pakistani and Qatari mediators, after the Strait of Hormuz closure — triggered by Israeli strikes on Lebanon — derailed earlier negotiations. The Iranian delegation refused a planned handshake and joint photo with US counterparts, IRNA reported.

Under the terms, released funds will be deposited into a US-controlled escrow account and used exclusively for purchasing food and medical supplies from American companies. Iran "urgently needs food and medical supplies," Trump said, adding that procurement will be conducted solely from the US. The president described the talks as progressing "well."

The Escrow Mechanism

The escrow structure mirrors the arrangement under the 2015 JCPOA, where Iran accessed frozen oil revenue through restricted channels for humanitarian trade. The US blockade had reduced Iranian oil exports significantly, with the administration estimating the sanctions cost Tehran billions in monthly revenue. The new waiver for oil sales allows Iran to resume exports during the 60-day negotiation period.

The 60-day window will determine the disposition of Iran's stockpiled enriched nuclear materials — left to later talks under the MoU — and establish mechanisms for technical negotiations toward a final agreement. Trump said Iran has "fully agreed" to nuclear verification, a condition the US had demanded since the breakdown of the 2015 deal.

Market Implications

The de-escalation removes a key geopolitical risk premium from crude markets, though the threat of a re-imposed blockade keeps uncertainty elevated. Safe-haven assets including gold face headwinds from the diplomatic thaw, while energy markets remain sensitive to any renewed confrontation involving Israel.

The last time the US and Iran reached a similar framework — the 2015 JCPOA — Brent crude fell about 15 percent over the following six months as sanctions relief brought Iranian barrels back to market. The current agreement's impact on supply will depend on how quickly the oil sales waiver translates into actual export volumes. WarCosts estimates the US has spent over $34 billion on the war with Iran, with wider economic costs exceeding $214 billion.

Israel's exclusion from the talks has triggered a diplomatic crisis between the two allies. Israeli pundits and politicians have attacked Trump and his envoys, with former Knesset member Yinon Magal calling special envoy Steve Witkoff and Jared Kushner "two little Jews." Vice President JD Vance responded by questioning why Israel would "attack the only powerful ally that I have anywhere left in the entire world."

This article is for informational purposes only and does not constitute investment advice.