Iran and the United States are advancing negotiations on a preliminary agreement to release billions of dollars in frozen Iranian funds, with a newly published 14-point draft memorandum outlining a broad framework for de-escalation, sanctions relief, and renewed nuclear talks. The talks, conducted through intermediaries in Oman and Qatar, aim to address a key sticking point in broader diplomatic efforts between the two nations.
The frozen funds, estimated to be worth billions, are held in accounts in South Korea, Iraq, and Luxembourg from oil revenues blocked by US sanctions after the 2018 withdrawal from the Joint Comprehensive Plan of Action (JCPOA). A preliminary deal would transfer these funds to Iranian accounts in a third country for use on humanitarian imports, building confidence for wider negotiations.
According to Iran’s Mehr News Agency, the draft understanding includes an immediate cessation of hostilities, US non-interference in Iran’s affairs, a 30-day lifting of the maritime blockade, and reopening of the Strait of Hormuz under Iranian leadership. Economically, it proposes suspending sanctions on Iranian oil and petrochemicals, granting full access to financial resources, and a $300 billion reconstruction plan. For the nuclear track, it foresees a 60-day negotiating window with all primary and secondary sanctions lifted, plus the release of $24 billion in frozen assets—half before talks begin.
While the draft remains unverified by US officials and represents a maximalist Iranian position, progress on fund release could ease tensions and stabilize global energy markets. The potential increase in oil supply and reduced geopolitical risk may positively impact investor sentiment, including in crypto markets. However, substantial political hurdles remain, particularly the $300 billion reconstruction demand and US military withdrawal commitments.
