US to release $12 billion in frozen Iranian assets before final talks? Conflicting claims as Trump announces peace deal

“This Great Deal will bring Peace and Security to the whole Region. Many presidents have tried to make Peace with Iran, and all have failed before me. The Leaders of the Region have, for the first time, found a President who can help them achieve real Peace. With the opening of the Strait upon the signing of the Deal on Friday, for purposes of mine removal, oil will flow on both ends again for the Region, and the World!” Trump declared via Truth Social.

$24 billion in frozen assets

Iranian state media reported on Monday that the US had agreed to release $12 billion in frozen assets before the start of negotiations. This will be followed by the release of a second tranche of $12 billion as talks progress over the next two months. Iran is reportedly expecting the formation of a separate ‘reconstruction’ fund worth at least $300 billion.
Frozen assets have been a recurring bone of contention between the two countries — with 

US Treasury Secretary Scott Bessent recently claimed that the money could be used to compensate Washington’s Gulf allies for any damage incurred during future hostilities by Tehran. This had prompted a sharp response last week from Iranian Foreign Minister Abbas Araghchi. He said that the use of Iranian assets to make payments to other countries would be a violation of the agreement.

‘No money will exchange hands’ insists Trump

“Our relationship with Iran is a much different and better one than previous administrations have had. Unlike Obama’s hundreds of billions of dollars in payments to them, including 1.7 billion dollars in green, cold cash, no money will exchange hands,” President Donald Trump asserted on Sunday.

Confirmation of the peace deal came hours later, with Trump removing the US Naval blockade of Iranian ports with immediate effect. He also “fully authorised the toll-free opening of the Strait of Hormuz” and urged ships to “start their engines”.

‘Pay-for-performance’ deal?

A US official did not immediately dismiss the Iranian claims on Monday — telling Axios that it was a “pay-for-performance deal”. The unnamed official insisted that no frozen funds will be released without Iran implementing its commitments. It remains unclear whether Tehran would acquiesce to such an arrangement.

According to the Iranian state-linked Mehr News Agency, the Memorandum of Understanding between the two countries calls for the release of $24 billion in blocked funds. The publication said the MoU also called for half of this amount to be made available before final talks start. Mehr News reported that final negotiations would not begin before the release of ‘half of Iran’s blocked funds, waiving of oil sanctions and lifting of the naval blockade.

$300 billion investment fund for reconstruction

The amount is separate from the reconstruction plans for Iran worth at least $300 billion. This detail has not been confirmed formally by either country, but Iranian state media reported that it was one of 14 points in the final memorandum. The state-linked Mehr News said both countries will now enter a 60-day period of negotiations.

Little is known officially about the MoU, and it remains unclear how this clause will play out. A report by The New York Times in late-May has also referred to an “international investment fund” that would be facilitated by the United States as part of a final settlement package. Times of Israel quoted officials to add at the time that the money could come from multiple countries.

When will the peace deal be signed?

Pakistani Prime Minister Shehbaz Sharif confirmed that both sides had declared an “immediate and permanent termination of military operations on all fronts including Lebanon”. The official signing ceremony will reportedly be held on June 19 in Switzerland.