White House on Saturday dismissed a report that the United States had agreed to release Iran’s frozen assets held in foreign banks. The denial comes at a time when American and Iranian delegations are holding negotiations in Islamabad to broker a ceasefire. A Reuters report cited a senior Iranian source claimed that US had agreed to release Iran’s frozen assets held in Qatar and other foreign banks.The same source also said that the proposed unfreezing of assets was “directly linked to ensuring safe passage through Strait of Hormuz.”The funds in question amount to $6 billion. They were first frozen in 2018 after the United States reimposed sanctions on Iran during the first presidency of Donald Trump and withdrew from the nuclear deal with Tehran. The money came from Iranian oil sales to South Korea and was held in South Korean banks.In 2023, the funds were moved to bank accounts in Qatar as part of a prisoner swap deal between the two countries, mediated by Doha. The agreement involved the release of five US citizens detained in Iran in exchange for the release of five Iranians held in the United States, along with the transfer of the funds.At the time, US officials said the money could only be used for humanitarian purposes such as food, medicine, medical equipment and agricultural goods, under US treasury oversight.However, following the October 7, 2023 attacks on Israel by Hamas, an ally of Iran, the administration of president Joe Biden froze the funds again. Officials said then that Iran would not be able to access the money for the foreseeable future and that Washington retained the right to fully block the account.
