Iran Demands Release of Frozen Billions as Trump Alters Draft Nuclear Deal

Mohsen Sanganeh, spokesperson for the budget committee of the Iranian parliament, told the news portal Icana that the initial release involves at least $24 billion to be received in two tranches. He said that under an agreement with the Emir of Qatar, half of that sum—$12 billion—would be made available to Iranians via a special mechanism.

Sanganeh stated that the release of funds is the central precondition for an agreement, alongside the cessation of hostilities and the end of the US naval blockade. The blockade, which targets ships heading to or from Iranian ports, aims to cut off Iran from oil export revenues.

Economic Crisis in Iran

The financial stakes are enormous. Estimates suggest more than $100 billion of Iranian money is held in foreign accounts, partially or fully frozen due to sanctions imposed over the years by the United Nations, the United States, and the European Union, partly over Iran's nuclear program.

The economic pressure inside Iran is severe. The Iranian daily newspaper Shargh published a report on Saturday titled 'Tehran: The City of Empty Pockets,' describing the economic plight of a middle class fallen into poverty. With nearly 100 percent inflation, prices for almost all goods have doubled, and many Iranians run out of money by mid-month, forced to ask supermarkets for credit.

Iranian President Massoud Pezeshkian stated mid-week at a meeting with economic officials that the 'central battlefield' is currently the economic war with the US. Experts say financial issues are of great importance to the Islamic Republic given the massive economic crisis in the country and the costly war.

Trump's Revisions and Nuclear Concerns

On the American side, the news portal Axios reported that Trump demanded changes to a draft agreement that his confidants had already negotiated with Iranian negotiators. Citing two US officials, Axios and the New York Times reported that Trump sent a new framework draft with stricter conditions back to Iran for review.

Trump specifically did not approve the planned handling of Iran's highly enriched uranium in the draft deal. The US president has repeatedly emphasized that one of his priorities is that Tehran's leadership commits to never developing nuclear weapons. Iran is accused of seeking to build a nuclear bomb due to its high uranium enrichment levels, though the Tehran regime maintains it uses nuclear energy only for civilian purposes.

When asked by a journalist at a cabinet meeting on Wednesday, Trump said that neither sanctions relief nor money for Iran is currently being discussed. He stated that the US has control over assets claimed by Iranians and that 'if they behave properly and do the right thing, they can have their money,' but that it is not yet time.

Military Tensions and the Naval Blockade

John Bolton, Trump's former National Security Advisor, told CNN that releasing the money would strengthen the position of the religious fanatics who lead the Revolutionary Guard. Bolton said that with the money they would regain power and could rebuild their nuclear program, missile arsenal, and terrorist organizations.

The negotiations are taking place against a backdrop of military tension. A fragile ceasefire between the US and Iran has been in effect since April 8, aimed at reaching an agreement to end the war in the Gulf region. On Friday, US forces fired on a Gambia-flagged freighter, the Lian Star, in the Gulf of Oman after it ignored more than 20 warnings and attempted to call at an Iranian port. A fighter jet fired a missile into the ship's engine room, rendering it unmaneuverable. The US military did not provide information about possible injuries.