United States President Donald Trump announced on Monday the completion of a peace deal between the US and Iran, declaring the immediate removal of the US naval blockade and the reopening of the strategic Strait of Hormuz chokepoint. Furthermore, Iran also confirmed the development, with Iranian Deputy Foreign Minister for Legal and International Affairs, Kazem Gharibabadi, stating that Tehran will enter a proposed 60-day negotiation period for a final agreement only after verifying Washington’s commitments to ending hostilities, lifting the blockade, and releasing Iranian assets. The peace deal is scheduled to be signed this Friday in Geneva.
The release of Iran’s frozen assets has been a major point of contention in negotiations between Washington and Tehran. Even as the world celebrates the peace deal, USD 12 billion in frozen assets remains a primary issue.
In a significant development, Iran’s Mehr news agency reported, citing a 14-point Memorandum of Understanding (MoU), that the US has agreed to release these frozen assets before the start of negotiations. These upcoming talks will focus on key issues, including Tehran’s nuclear programme.
The document published by Mehr stipulates “the release of 24 billion dollars in frozen Iranian assets during the 60-day negotiation period” that begins after the MoU is concluded.
The text, which has not been officially confirmed, also specified that “half of this amount must be made available to Iran before the start of the negotiations.”
According to Iran International, the contents published by Mehr, remain unconfirmed and could still be subject to change as both sides move toward negotiations.
It also said that neither Iranian nor US officials have publicly confirmed its contents.
US on Iran’s frozen assets
The US was quick to turn the claim on its head. An official told Axios that no frozen funds will be released without Iran implementing its commitments.
The senior US official stated, “This is a pay-for-performance deal.”
The dispute over Iran’s frozen funds is not new. The assets were earlier brought up by the US when Treasury Secretary Scott Bessent said they may be used to financially compensate Washington’s Gulf allies for any damage incurred during future hostilities by Tehran.
This had prompted a sharp response from Iran’s Foreign Minister Abbas Araghchi, who said that if Iranian assets are used to make payments to other countries, it is a violation of the agreement.
Trump’s announcement of peace deal
In a post on Truth Social, Trump wrote, “The Deal with the Islamic Republic of Iran is now complete. Congratulations to all! I hereby fully authorise the toll-free opening of the Strait of Hormuz, and, simultaneously herewith, authorise the immediate removal of the United States Naval blockade. Ships of the World, start your engines. Let the oil flow!”
The announcement came amid growing international efforts to end tensions in West Asia and follows days of intense diplomatic engagement.
Meanwhile, Israel, which has insisted it be allowed a free hand to pursue Hezbollah as it occupies southern Lebanon and has extended its military operations into areas its forces have not been in for a quarter century, did not immediately comment.
US-Iran peace deal
The peace deal between the US and Iran is likely to bring peace to the region, where a shaky ceasefire has been interrupted periodically by tit-for-tat attacks.
The US-Iran conflict had directly and severely impacted the global energy and stock markets, leading to global concerns.
(with ANI inputs)
