US rules out Iran fund release as $25B in assets stay frozen

The United States will not release any frozen Iranian assets after signing the preliminary agreement, a US official said, pushing back against Iranian expectations of immediate sanctions relief as oil prices steadied near $83 a barrel.

"No funds will be disbursed to Iran following the signing of the memorandum of understanding," the official said, denying that any previously frozen Iranian assets had been unfrozen.

The clarification comes after Iran's Deputy Foreign Minister Kazem Gharibabadi said sanctions relief would be discussed in future negotiations, while Foreign Ministry spokesman Esmail Baghaei suggested Iran had received commitments on eventually accessing frozen assets. Brent crude fell nearly 5% to around $83 a barrel after the deal was announced Sunday, as markets priced in the potential reopening of the Strait of Hormuz, which handles about 21% of global oil trade.

The standoff over Iran's roughly $25 billion in frozen overseas accounts — locked by longstanding international sanctions — threatens to complicate the 60-day negotiation period before a final agreement is due. President Trump has insisted Tehran will receive no relief until it delivers on commitments, while Iran has made entering talks conditional on the US fulfilling its promises, including releasing assets.

Sanctions Relief Remains the Core Disagreement

The question of sanctions relief was deliberately deferred in the preliminary framework, which focuses on reopening the Strait of Hormuz and establishing a 60-day cease-fire. Iran's Foreign Minister Abbas Araghchi said Monday that negotiations will grapple with easing American economic sanctions and limiting Tehran's nuclear program — two issues on which neither side has shown much willingness to compromise.

The last time the US negotiated a comprehensive nuclear deal with Iran in 2015, sanctions relief unlocked an estimated $100 billion in frozen assets and allowed Iran to resume oil exports, boosting its economy by about 7% in the following year. Trump withdrew from that agreement in 2018 and has repeatedly criticized it, making any similar arrangement politically fraught.

Market Implications Hinge on Oil Supply

The US clarification on frozen assets reduces the probability of a rapid return of Iranian crude to global markets, supporting oil prices that had fallen on the deal's announcement. Iran was producing about 3.2 million barrels per day before the war, and any sustained return of that supply would pressure OPEC+ production discipline.

Gold prices edged higher Monday as the uncertainty over sanctions relief sustained geopolitical risk premiums, while the US dollar index held steady as traders assessed the implications of a protracted negotiation period. The deal is scheduled to be signed Friday in Geneva, with the 60-day clock starting after that.

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