ISLAMABAD: The first significant breakthrough in ongoing Islamabad talks has reportedly emerged as the United States agreed to unfreeze a portion of Iranian assets held in foreign bank accounts, according to sources familiar with the discussions.
A senior Iranian official told Reuters that Washington had agreed to release frozen Iranian funds currently held in Qatar and other international banks. The move, the source said, demonstrates the US administration’s “seriousness” about reaching a broader agreement with Iran during the Islamabad talks.
The official, who requested anonymity due to the sensitive nature of the negotiations, said the decision to unfreeze the assets was closely linked to ensuring safe passage through the strategic Strait of Hormuz, which remains a central issue in the negotiations.
While the exact amount was not specified by the first source, another Iranian official said Washington had agreed to release approximately $6 billion in frozen Iranian funds currently held in Qatari bank accounts. The United States has not yet issued an official confirmation regarding the reported decision.
The Ministry of Foreign Affairs of Qatar also did not immediately comment on the development.
The funds in question were originally frozen in 2018 after sanctions were reimposed on Iran by then US president Donald Trump, following Washington’s withdrawal from the nuclear agreement with Tehran.
The $6 billion — generated from Iranian oil sales to South Korea — had been held in South Korean banks for several years due to the sanctions. In 2023, the funds were transferred to Qatari accounts as part of a prisoner exchange agreement between the United States and Iran.
That swap, mediated by Doha, involved the release of five US citizens detained in Iran in exchange for five Iranians held in the United States and the transfer of the frozen funds. However, the money was refrozen later by the administration of Joe Biden following the October 7, 2023 attacks by Hamas on Israel and the subsequent war in Gaza.
At the time, US officials stressed that the funds could only be used for humanitarian purposes, such as purchasing food, medicine, medical equipment and agricultural goods, under strict oversight from the US Treasury.
The reported move to release the assets is being viewed as a possible confidence-building step aimed at advancing negotiations and easing tensions in the region.