Trump and Iran are at loggerheads over control of billions in frozen assets abroad, an expert says
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As US and Iranian talks convened in Switzerland on Sunday, a regional analyst warned that a dispute over billions in unfrozen Iranian assets could test the durability of the new interim deal.
The differences are emerging, they say, as Washington and Tehran begin implementing a memorandum of understanding signed on June 17, with negotiators holding the first round of talks in Bürgenstock, near Lucerne, Switzerland.
According to Iran International, President Masoud Pezeshkian indicated what Tehran expects at the beginning of Sunday, saying, “$6 billion of our funds in Qatar will be returned. Trump, who tried to deny Iran its rights, has acknowledged it in his latest speech.”
The dispute dates back to discussions at the G7 summit in Évian-les-Bains, France, where world leaders were discussing the issue.
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As US-Iran talks opened Sunday in Switzerland, a dispute arose over who controls and guards billions of dollars in Iran’s potentially unfrozen assets. (Fabrice Coffrini/Pool via REUTERS)
“We took their money, it’s not our money, it’s their money, we stopped it,” said President Donald Trump. “At some point, I think we’re going to have to bring it back.”
He also stressed that any financial access remains conditional, writing in Truth Social that Iran will receive “not ten cents” during the 60-day negotiation period if it fails to uphold its commitments.
“There are two competing stories about the frozen funds,” Alex Vatanka, a senior fellow at the Middle East Institute, told Fox News Digital.
“Removing the frozen goods is not just an economic question. It is one of the central political tests of trust between Tehran and Washington and will probably be one of the first major conflicts in the coming weeks,” Vatanka added.
Article 11 of the draft MOU states that the United States “commits to make fully available” the restricted and frozen Iranian funds.
However, the agreement binds any disbursement to a step-by-step process based on compliance, rather than providing immediate, unrestricted access.
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The American delegation, including Steve Witkoff, JD Vance and Jared Kushner, arrived in Switzerland on Sunday. (Nathan Howard/Pool/REUTERS)
“First, there is still a lot of uncertainty about the total amount of Iranian assets frozen abroad,” Vatanka said.
“Iranian officials often talk about more than $100 billion, while Western estimates are much higher. However, current negotiations seem to be focused on getting access to about $24 billion to $25 billion as the first phase.”
Iran’s frozen assets are estimated at between $100 billion and $120 billion and are kept under financial sanctions and restrictions in countries including China, India, Iraq and South Korea, according to a Wall Street Journal report.
Vatanka said the central dispute goes beyond the size of the payout.
“The real dispute is not just how much money Iran receives, but who ultimately controls how it is spent.”
“Iranian officials are emphasizing sovereignty over capital, while the United States is trying to preserve power by imposing conditions on its use,” he added as talks continued on Sunday.
In a statement on X, Qatar’s Ministry of Foreign Affairs said the talks aimed to reach a comprehensive and permanent agreement covering all aspects of the framework.
Ministry spokesman Majed bin Mohammed Al Ansari said the technical teams are still negotiating the final agreement and the monitoring teams will monitor their performance and track progress.
The US and Qatar are exploring ways to channel an initial $6 billion in aid purchases, including food and medicine, according to reports.
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Hezbollah terrorists with guns are shown in this photo. A “terrorist network” supported and operated by Hezbollah and Iran was disrupted in the United Arab Emirates, according to a report. (Fadel Itani/NurPhoto via Getty Images)
However, Western intelligence officials remain concerned that unfrozen funds may be diverted to regional conflicts instead of domestic development programs.
Reuters reported that Iran has already signaled to Hezbollah that increased funding may resume if Tehran’s cash flow improves.
“This issue also has an important regional dimension,” said Vatanka. “Iran has promised to direct part of those reconstruction funds to support its network of lawyers in Lebanon.”
“The United States has stressed that Iran will not be able to use any unfrozen assets to support terrorist organizations, warning that funding will be withdrawn if Tehran violates the terms of the agreement,” he added.
Vatanka said that the two sides are still divided on the broader purpose of the agreement.
“Tehran is presenting an estimated $25 billion in cash that will be phased out and invested in rebuilding the country’s infrastructure, with officials talking about roads, airports, transportation channels and projects that clearly benefit the Iranian people.”
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“Washington, however, seems to be explaining something very little,” Vatanka said.
“US officials have indicated that they want the funds to be released in controlled ways, particularly for humanitarian aid and other approved civilian purchases, instead of giving Tehran unfettered access.”
