Politico: US, Iran discuss access to $16 billion in frozen funds

The United States and Iran have discussed granting Tehran access to more than $16 billion in blocked funds held in Qatar and other locations as part of ongoing negotiations, Politico reports, citing a European official and another person familiar with the talks.

Sources said the emerging agreement appears to focus on restoring shipping in the Strait of Hormuz and ending the US blockade, while nuclear negotiations are being postponed to a later stage.

The discussions come amid broader diplomatic efforts to manage tensions between Washington and Tehran and address disruptions to regional maritime security.

The United States had previously considered the assets usable by Iran for limited transactions, but instructed banks in 2023 to halt their release amid the Israel–Hamas war.

A US approval could enable alternative mechanisms allowing Iran to access the funds without directly breaching sanctions or unfreezing the restricted assets.

US Secretary of State Marco Rubio told Congress last week that the United States would not provide Iran with any upfront sanctions relief in exchange for reopening the Strait of Hormuz.

He said such measures would only be considered in later-stage negotiations, provided Iran agrees to restrictions on its nuclear program.

By Bakhtiyar Abbasov