Negotiations between U.S. and Iranian representatives in Switzerland have brought to light a clash over the control of billions of dollars in Iranian assets that might be unfrozen. This issue is emerging as both nations start to implement the memorandum of understanding signed on June 17. The talks commenced in Bürgenstock, near Lucerne, Switzerland.
According to Iran International, President Masoud Pezeshkian expressed Iran’s expectations early Sunday, stating, “$6 billion of our funds in Qatar will be returned. Trump, who tried to deny Iran its rights, acknowledged them in his recent speech.”
This dispute has roots in discussions during the G7 summit held in Évian-les-Bains, France, where international leaders debated the matter.
“We have taken their money, it isn’t our money, it is their money, and we froze it,” President Donald Trump said. “At a certain point in time, I guess we’re going to have to give it back.”
Trump emphasized that access to the funds is strictly conditional, stating on Truth Social that Iran would receive “not ten cents” during the 60-day negotiation period if it failed to uphold its commitments.
Senior fellow Alex Vatanka from the Middle East Institute commented on the situation, noting, “Releasing frozen assets is not simply an economic question. It is one of the central political tests of trust between Tehran and Washington and will likely become one of the first major implementation disputes in the weeks ahead.”
Paragraph 11 of the MOU framework mentions that the United States “undertakes to make fully available” restricted and frozen Iranian funds. However, any release follows a step-by-step process based on compliance, not granting immediate, unrestricted access.
A U.S. delegation, including Steve Witkoff, JD Vance, and Jared Kushner, arrived in Switzerland on Sunday. Their discussions focus on potentially freeing up between $24 billion and $25 billion as an initial tranche of Iran’s frozen assets.
According to estimates, Iranian assets frozen abroad range from $100 billion to $120 billion. These are held under sanctions and financial restrictions in countries like China, India, Iraq, and South Korea.
Vatanka pointed out that the disagreement stems not just from the amount, but from who controls the funds’ expenditure. He stated, “Iranian officials are emphasizing sovereignty over the funds, while the United States is trying to preserve leverage by attaching conditions to their use.”
Majed bin Mohammed Al Ansari from Qatar’s Foreign Ministry mentioned that talks aim to reach a comprehensive agreement covering all elements of the framework. Technical teams continue to negotiate while oversight groups monitor the implementation.
The U.S. and Qatar are working on a system to direct an initial $6 billion toward humanitarian needs, such as food and medicine.
Reports highlight that Western intelligence officials are concerned unfrozen funds could possibly be redirected to regional conflicts instead of domestic projects. There is apprehension about Iran’s signaling to Hezbollah that financial support could increase if Tehran’s financial situation improves.
Vatanka emphasized Iran’s promise to use some of these funds to assist its weakened proxy network in Lebanon. He noted, “The United States has insisted that Iran cannot use any unfrozen assets to fund terrorist organizations, warning that access to the funds would be revoked if Tehran violates the terms of the agreement.”
He also observed differing views on the agreement’s broader purpose, explaining, “Tehran is presenting the roughly $25 billion as money that will be released gradually and invested in rebuilding the country’s infrastructure, with officials talking about roads, airports, transport corridors, and projects that visibly benefit ordinary Iranians.”
U.S. officials, however, appear to have a narrower vision. Vatanka noted, “U.S. officials have indicated they want the funds released through controlled mechanisms, primarily for humanitarian and other approved civilian purchases, rather than giving Tehran unrestricted access.”
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