WSJ: US, Qatar develop mechanism to release frozen Iranian funds

The United States is working with Qatar on a plan that would make billions of dollars in frozen Iranian funds available for humanitarian purposes, people familiar with the matter told The Wall Street Journal.

The proposal, which has not yet been finalised, is intended to grant Iran access to a portion of its estimated $100 billion in frozen overseas assets, beginning with around $6 billion held in Qatar. The funds would reportedly be used to purchase food, medicine, and other humanitarian goods through Iran’s central bank.

Under the mechanism being discussed, Qatar would facilitate payments for approved humanitarian imports using Iranian funds derived mainly from oil revenues that have been blocked abroad under international sanctions.

Sources said the arrangement could serve as a model for unlocking additional frozen Iranian assets in other jurisdictions, potentially expanding access to an initial tranche of an estimated $24 billion in restricted funds.

The agreement between Washington and Tehran includes a U.S. commitment to make Iranian frozen assets “fully available for use,” subject to an agreed mechanism governing disbursement. The funds would reportedly continue to be released contingent on Iran’s participation in ongoing negotiations.

By Sabina Mammadli