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Iran’s frozen assets worth $12 billion continue to be a primary bone of contention even as the world celebrates a peace deal between the US and Tehran, which is scheduled to be signed on Friday in Geneva.

According to Iran’s Mehr news agency, which cited a 14-point memorandum of understanding, the US has agreed to release the frozen assets before the start of negotiations, which focus on key issues including Tehran’s nuclear programme.

The document published by Mehr stipulates “the release of $24 billion in frozen Iranian assets during the 60-day negotiation period” that begins after the memorandum of understanding is concluded. Furthermore, the text, which has not been officially confirmed, specifies that “half of this amount must be made available to Iran before the start of the negotiations.”

However, the US was quick to turn the claim on its head, with an official telling Axios that no frozen funds will be released without Iran implementing its commitments. The senior US official stated, “This is a pay-for-performance deal.”

This diplomatic friction follows an announcement by US President Donald Trump on Saturday, who confirmed that a peace deal with Iran had been agreed upon and would see the critical marine chokepoint, the Strait of Hormuz, reopening months after the war brought movement to a near halt. White smoke rose from the White House, signifying that the agreement had been reached.

Providing Tehran’s perspective, Iranian Deputy Foreign Minister Kazem Gharibabadi was quoted by Tasnim news agency as saying that negotiations for a final deal will be held during a 60-day period, depending on Washington coming through on its commitments, including ending hostilities, lifting the blockade, and releasing frozen assets. Iranian media reports added that the deal also included a ceasefire in Lebanon.

The dispute over these funds is not new. Iran’s frozen assets were earlier brought up by the US when Treasury Secretary Scott Bessent said they may be used to financially compensate Washington’s Gulf allies for any damage incurred during future hostilities by Tehran.

This prompted a sharp response last week from Iran’s Foreign Minister Abbas Araghchi, who said that if Iranian assets are used to make payments to other countries, it is a violation of the agreement.

Despite the ongoing disagreement over financial matters, the broader pact has received widespread acclaim, with the UK, Germany, Italy, and France among the earliest to respond with readiness to lift sanctions on Iran if the country takes clear, verifiable steps.

In contrast, Israel, which has insisted it be allowed a free hand to pursue Hezbollah as it occupies southern Lebanon and has extended its military operations into areas its forces have not been in for a quarter century, did not immediately comment.

Ultimately, the deal hopes to bring peace to the region, where a shaky ceasefire has been interrupted periodically by tit-for-tat attacks. This has directly and severely impacted the global energy and stock markets, sending commodity prices soaring.

Published on June 15, 2026