US official: No frozen Iranian funds released, strict controls remain

A US official has stated that no frozen Iranian funds have been released and that none will be until Tehran meets the requirements of an interim agreement. The official, speaking anonymously, emphasized that the money would function as an escrow account, with payments sent directly to approved vendors for humanitarian goods rather than to the Iranian regime itself.

Treasury Secretary Scott Bessent confirmed that the Treasury Department would oversee how any unfrozen funds are spent, noting that a significant portion would be allocated to purchasing US foodstuffs and medicines. This arrangement is linked to ongoing US-Iran negotiations, allowing Tehran to request specific humanitarian items but never directly receive the funds. Officials assert that Washington retains complete control over the process and can immediately cease payments if Iran deviates from the agreed path.

The $6 billion fund in question originated from Iranian oil sales to South Korea and was transferred to Qatar for humanitarian purposes under the Biden administration. Payouts were halted after the October 7th Hamas attack on Israel. This amount is separate from an estimated $10 billion Iran could generate through oil sales under a 60-day waiver of sanctions. Experts, however, suggest that such waivers ease Tehran's access to legitimate banking networks.