The United States and Qatar are reportedly developing a proposal that could allow Iran to regain access to billions of dollars in frozen assets following President Donald Trump’s signing of a peace agreement with the country.
The Wall Street Journal reported that the initiative is intended to give Tehran limited access to a portion of roughly $100 billion in frozen funds currently held in accounts around the world.
Individuals familiar with the discussions told the newspaper that the assets, much of which stem from oil sales, would be restricted to humanitarian purposes only.
Under the proposed arrangement, Iran would be permitted to use the money solely for items such as food, medicine and other approved humanitarian supplies.
The first tranche could involve $6 billion currently held in Qatar, funds that were frozen after sanctions were imposed in 2023 during President Joe Biden’s administration, provided the plan receives approval.
Sources told the outlet that the mechanism could serve as a model for gradually releasing additional frozen Iranian assets under tightly controlled conditions.
According to the report, officials are expected to work through the finer details in the months ahead, with the proposal among several options Washington is considering in the wake of the peace deal.
Qatar has taken on an increasingly prominent role in negotiations between Washington and Tehran, despite Pakistan initially being viewed as the central mediator in the peace process.
Trump is seen here alongside the Emir of Qatar Sheikh Tamim bin Hamad Al Thani earlier this week
Iran’s supreme leader Mojtaba Khamenei is seen here in a 2016 file photo
After those talks failed, Qatar seized the moment to enter the fray, with an Iranian delegation visiting Doha in late May – despite Qatar being targeted by Tehran’s strikes during the war.
Qatar has made an effort to increase its global profile in the past few years, including by hosting the soccer World Cup in 2022 as it seeks to compete with its rivals in the Gulf, including the might of Saudi Arabia.
The peace deal signed this week called for the US to make Iran’s frozen assets ‘fully available’ to them. Other countries hoarding the funds include China, India, and Iraq.
According to the outlet, the talks to release the funds held by Qatar started in late May.
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Analysts told the Journal that the country badly needs the cash injection to repair its economy.
Trump has said the peace agreement will stave off an ‘economic catastrophe’ but threatened to ‘bomb the hell’ out of Iran if no final deal emerged.
On Saturday, Trump posted to his Truth Social page saying: ‘Radical Left fools and Dumocrats realize how well we have done in our War against Iran, with their Country being completely defeated militarily.
‘Obuma just kept giving them $Billions in cash, and never used our then depleted military for what should have been done to reign in the World’s number one sponsor of terror, Iran.
Part of the agreement involves Iran making arrangements to ensure that traffic starts flowing through the Strait of Hormuz, seen here, ‘immediately’
‘They had ZERO respect for him. They thought he was, like Sleepy Joe Biden, a weak and ineffective leader, and on this they were 100% correct.
‘Iran got away with ”murder” for 47 years, until I came along. Then it all changed. AMERICA IS BACK!!! President DJT.’
Part of the agreement involves Iran making arrangements to ensure that traffic starts flowing through the Strait of Hormuz ‘immediately’.
On Saturday, Iran said it was closing the strait and warned all vessels not to approach the shipping lane, which provides a vital role in global trade.
Citing a US ‘breach of contract’ and Israel’s ‘continuous and relentless violation of the ceasefire in southern Lebanon’, Iran’s central military command announced Saturday ‘that the Strait of Hormuz will be closed to vessel traffic’.
It warned all ships that their security would be at risk if they attempted to traverse the strait, through which some 20 per cent of the world’s oil and liquefied natural gas travels each year.
The Iranian threat came minutes after Vice-President JD Vance told journalists ‘things are going well’ in negotiations and he expects to travel to Switzerland soon.
‘I expect that I will leave some time the next couple of days, but you know it’s always a delicate coordination dance,’ Vance told Fox News, two days after unexpectedly postponing a planned trip to discuss next steps on the US-Iran agreement to end the war.
The vice president said Jared Kushner and Steve Witkoff were in Switzerland, handling ‘some of the technical elements’ of the talks, and had reported that ‘things are going well.’
