Iran Demands $100 Billion Back Before Signing Any Peace Deal
The United States and Iran are closer than ever to signing an agreement to end their war, but a critical dispute over approximately $100 billion in frozen Iranian assets threatens to derail the entire deal.
Iranian Foreign Minister Abbas Araghchi posted on X that an agreement "has never been closer" to completion, while a senior U.S. official said the tentative deal includes terms for removing and destroying nuclear material from Iran [171747]. However, President Donald Trump later rejected the Iranian account of the draft agreement as "lies" bearing "no relation to the truth," highlighting the deep mistrust between the two nations [171313].
The emerging deal is expected to reopen the Strait of Hormuz, a vital shipping lane for oil and gas, and includes the phased lifting of sanctions on Iran and the release of frozen Iranian assets [171747]. The U.S. has maintained a naval blockade of Iranian ports since mid-April to choke off Iran's oil exports [171747].
The main sticking point is approximately $100 billion in frozen Iranian assets—money from oil and gas sales held in banks across Qatar, South Korea, Japan, and India as part of the U.S. strategy of "maximum pressure" [171786]. Iran wants its assets back before making any concessions on its nuclear program, while the U.S. is considering confiscating the funds to pay war reparations to Gulf nations [171786]. Iran is reportedly asking for $25 billion as a first step [171786].
Trump announced on Thursday that a peace agreement "could be signed over the weekend" and may take place in Europe, adding that "Iran's supreme leader has approved the deal" [170998]. He later canceled planned attacks on Iran and said an agreement had been reached at the "highest level" with Iranian leadership [170998][171068]. Iran's Fars news agency initially denied a deal was in place but later reported a high probability Iran will accept it [170998].
Iran announced on Tuesday that the "main part" of a text outlining a potential understanding with the U.S. has been finalized, though a spokesperson warned that Washington's "contradictory positions" continue to disrupt the overall negotiation process [170830].
The conflict, launched by the U.S. and Israel on Feb. 28, has rattled the Middle East and nearly shut down oil and natural gas shipments from the Persian Gulf [171747]. A fragile ceasefire has been in place since April 7, but the situation remains highly unstable [168642]. Iran fired ballistic missiles at Israel on Sunday in response to Israeli attacks on Beirut, Lebanon, and Israel then bombed targets in Iran, including Tehran, Isfahan, and Tabriz [168642]. Both sides agreed to halt hostilities on Monday morning but kept up aggressive language [168642].
Iran now insists any agreement must also end fighting in Lebanon between its ally Hezbollah and Israel [171747]. Israeli Prime Minister Benjamin Netanyahu said Israel was not a party to the deal, and his Defense Minister warned that Israel could still act independently toward Iran [171747]. Trump spent last week sending private and public warnings to Netanyahu not to sabotage a potential deal, telling the Financial Times, "He has no other choice. I make the decisions. He does not make the decisions" [168642].
Pakistan has been leading mediation efforts, backed by Saudi Arabia, Turkey, Egypt, and Qatar [171747]. Qatar holds the largest share of frozen Iranian assets, making Qatari mediators central to the talks [171786].