Will US Release Tehran's Funds? The Iran Peace Push Comes With A $16 Billion Question

Last Updated:June 12, 2026, 15:01 IST

Iran has remained steadfast in its demands for the release of frozen assets and war compensations from the United States.

US President Donald Trump on Thursday claimed that an initial agreement aimed at ending the war with Iran is close, yet Tehran insists that it would not compromise on what it sees as ‘red lines’. An important aspect of the emerging deal is the question of Iranian frozen assets.

Hours after threatening to hit Iran “very hard", Trump called off the latest strikes, saying a peace deal had been approved by the Iranian leadership and other parties – including Israel, Saudi Arabia, UAE, Qatar, Turkey, Pakistan, Bahrain and others.

While Trump did not offer any details about the peace deal or what transpired behind the scenes that led him to call off the attack, Politico reported that Qatar, the UAE and Pakistan played a key role in persuading the US President to step back from plans for an immediate military strike on Iran.

What Did US Offer Iran?

According to the report, these countries were able to assure Trump that a deal was near by using their perceived influence over the top Iranian leadership. US and Arab officials are cautiously optimistic that Trump’s latest announcement might lead to a diplomatic breakthrough.

An Israeli official and another person briefed on the discussions said that key points of the deal focused on reopening the vital Strait of Hormuz, a critical energy chokepoint that has been nearly shut for commercial shipping, and removing the US blockade. The discussions on Iran’s nuclear programme would take place later.

As part of the negotiations, the US and Iran have discussed giving Tehran access to restricted funds held in Qatar and elsewhere that could total more than $16 billion, Politico reported, citing a European official and another person briefed on the talks.

Iran has remained steadfast in its demands for the release of frozen assets and war compensations from the United States. However, the US said any release of assets would be done after a final deal is reached. Critics argue that releasing Iranian funds would allow the Islamic Republic to bolster its defences.

About the Author

Aveek Banerjee

Aveek Banerjee is a Senior Sub Editor at News18. Based in Noida with a Master's in Global Studies, Aveek has more than three years of experience in digital media and news curation, specialising in int...Read More

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