As U.S. and Iranian negotiators convened in Switzerland on Sunday, a regional expert highlighted growing concerns that a disagreement over billions in potentially unfrozen Iranian assets could jeopardize the newly signed interim agreement.
The tension emerged as Washington and Tehran initiated implementation of the June 17 memorandum of understanding, with initial talks held at Bürgenstock near Lucerne.
Iranian officials, according to Iran International, indicated expectations of recovering $6 billion in funds held in Qatar, a point President Donald Trump acknowledged in his recent remarks, though he emphasized strict conditions for release.
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As U.S.-Iran talks commenced in Switzerland, a contested debate over control and oversight of billions in Iranian assets escalated. (Fabrice Coffrini/Pool via REUTERS)
Trump asserted that Iran’s funds were “their money,” not U.S.-held assets, signaling potential future releases. However, he clarified that any access would depend on Iran fulfilling its commitments, with no funds released during the 60-day negotiation period if terms were violated.
Alex Vatanka, a Middle East Institute fellow, noted to Fox News Digital that the dispute over frozen assets extends beyond economics, representing a critical test of trust between the two nations.
Clause 11 of the MOU mandates the U.S. to make restricted Iranian funds fully available, but release mechanisms are tied to a compliance-based process rather than immediate disbursement.
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The U.S. delegation, including JD Vance and Jared Kushner, arrived in Switzerland on Sunday. (Nathan Howard/Pool/REUTERS)
Estimates of Iran’s frozen assets range widely, with Western assessments focusing on a $24 billion to $25 billion initial tranche, while Iranian officials cite figures exceeding $100 billion.
Vatanka emphasized that the core disagreement lies not in the amount but in who controls the funds’ allocation.
U.S. officials aim to maintain leverage by tying funds to specific uses, while Iran stresses sovereignty over its treasury.
Qatar’s Foreign Ministry stated the talks seek a comprehensive agreement, with technical teams finalizing details and oversight groups monitoring implementation.
An initial $6 billion is proposed for humanitarian purchases, such as food and medicine, per reports.
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Hezbollah terrorists are depicted in this image. A “terrorist network” linked to Iran was recently dismantled in the UAE, according to reports. (Fadel Itani/Nur Photo via Getty Images)
Western intelligence warns that unfrozen funds could be redirected to regional conflicts instead of domestic development.
Reuters reported Iran has signaled potential financial support to Hezbollah if its cash flow improves.
Vatanka highlighted the regional implications, noting Iran’s pledge to allocate reconstruction funds to support its proxy network in Lebanon.
U.S. officials have reiterated that funds cannot finance terrorist activities, with access revoked for violations.
The divergence also extends to the agreement’s broader goals.
Tehran frames the $25 billion as infrastructure investment, while Washington advocates controlled disbursement for humanitarian and civilian purposes.
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