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U.S. and Iran Clash Over Control of $6 Billion in Unfrozen Funds

Control of the funds will determine whether the interim memorandum’s 60-day verification pause endures.

Overview

  • An interim memorandum signed in mid‑June paused open hostilities and opened a 60‑day technical window for verification and talks.
  • The U.S. says Treasury will supervise an escrow‑style mechanism to channel roughly $6 billion held in Qatar into payments for humanitarian purchases, with an emphasis on U.S. agricultural and medical suppliers.
  • Iranian officials, including the central bank governor and parliamentary negotiators, have publicly rejected any legal requirement to buy U.S. goods and insist Tehran will decide how its assets are spent.
  • Key implementation questions remain unresolved: where funds will legally sit, what authority would enforce purchase conditions, how Qatar and approved vendors fit in, and how fungibility risks would be prevented.
  • The dispute has provoked sharp domestic pushback in both countries and keeps working groups and IAEA verification on a critical path that will determine whether the deal holds or unravels.