Rs 2297588400000: Iran may regain access to frozen funds after US deal, this country hold’s most of Tehran’s money

New Delhi: Under the proposed nuclear agreement with the United States, one of the biggest reliefs for Iran is expected to come through the release of its frozen assets. Due to years of economic sanctions, nearly $120 billion belonging to Iran remains blocked in different countries across the world. Iran is currently seeking access to nearly $24 billion in the first phase of the agreement.

To facilitate the process, high-level discussions are underway in Doha, the capital of Qatar.

According to a report by Middle East Eye, Iranian assets are currently frozen in countries including China, the United States, the United Kingdom, Qatar and South Korea. Due to pressure from the US and sanctions imposed on Tehran, Iran has so far been unable to access these funds.

How much of Iran’s money is frozen in which countries?

South Korea currently holds nearly $6 billion of Iran’s frozen assets. Iran had exported oil to Seoul, but payments for the transactions could not be completed because of US sanctions.

Similarly, in 2023, the Biden administration announced a plan to transfer another $6 billion to Iran through Qatar in exchange for the release of five prisoners. Those funds are currently being held in Qatar.

Apart from South Korea and Qatar, Iranian assets are also believed to be frozen in Turkey and the United States. The United Kingdom, too, reportedly holds certain Iranian assets. Reports claim that a bungalow linked to Mojtaba Khamenei, son of Iran’s Supreme Leader Ayatollah Ali Khamenei, is located in the UK.

In addition, a significant portion of Iranian funds remains blocked in international banking institutions. Tehran has repeatedly claimed that these restrictions were imposed under pressure from the United States and that most of its frozen assets are held within global financial systems influenced by Washington.

Back in 2015, after the earlier nuclear agreement, the Obama administration had announced the unfreezing of nearly $50 billion in Iranian assets. However, the Donald Trump administration later withdrew from the deal and reimposed strict sanctions on Iran, effectively reversing the agreement.

What does the Iran-US agreement entail?

According to CNN, Iran and the United States are currently working toward an interim understanding over nuclear issues and regional tensions.

Under the proposed arrangement, Iran would keep the Strait of Hormuz fully open and refrain from launching attacks on neighbouring countries. Tehran would also hold negotiations with Washington regarding possible measures to reduce or eliminate its stockpile of enriched uranium.

In return, the United States and its allies would reportedly avoid launching attacks against Iran. Lebanon would also be protected from escalation under the arrangement. Additionally, Iran is expected to receive sanctions relief and access to a part of its frozen assets.

Iran is currently seeking the release of nearly $24 billion out of its estimated $120 billion frozen worldwide.

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