The United States and Iran have reached a memorandum of understanding aimed at ending the war. According to a report by the British "Financial Times" on June 18, the U.S. government will allow Iran to use $6 billion in frozen funds, but these funds can only be used to purchase goods from the United States. U.S. officials said that if both sides reach an agreement on issues such as uranium enrichment, the U.S. would release more funds in final negotiations.
Due to the severe economic sanctions imposed by the United States, billions of dollars in Iranian oil revenues have been frozen at overseas central banks. A source familiar with the matter revealed that after reaching a memorandum of understanding, the U.S. government will allow Iran to use $6 billion in oil revenues stored in Qatar. However, Iran will only be allowed to purchase humanitarian supplies and goods that are not subject to sanctions from the United States.
This funds were originally stored in Korea. After the United States’ Biden administration reached a prisoner exchange agreement with Iran in September 2023, the funds were transferred to an account in Qatar. At that time, this measure was seen as part of the US-Iran “trust building” efforts. However, after a new round of Palestinian-Iranian conflict erupted in October 2023, relations between Iran and the West deteriorated sharply, and these $6 billion in funds were frozen.
Informative diplomats boasted, "Trump took over the agreements that Biden had messed up. They limited the money to be used only for purchasing humanitarian goods that are not subject to sanctions, and ensured that the money was spent on American goods, thus creating a win-win situation. Iran received humanitarian supplies for their people, and Iranian funds were used to support American farmers."
According to the Financial Times, this is part of the several billion dollars in incentives that the United States is pushing for in the negotiations. Under the interim agreement reached between the US and Iran, the United States will phase out the frozen Iranian funds overseas over a period of 60 days, with the specific timeline depending on the restoration of traffic in the Strait of Hormuz and the progress of the final settlement.
On June 17th local time, in Paris, France, United States President Donald Trump signed a Memorandum of Understanding between the United States and Iran at the Palace of Versailles.
According to Iran's Meehler News Agency, during the final 60-day negotiations, the United States will unfreeze $24 billion of frozen Iranian assets. Half of this funds must be provided to Iran before the negotiations begin. However, US officials deny that Iran will receive $12 billion in unfrozen assets without conditions before the start of the 60-day negotiations, emphasizing that Iran must first fulfill its commitments.
Regarding the latest details disclosed by The Financial Times, the White House has not responded yet. However, a U.S. official said that as long as Iran behaves well, such as agreeing to abandon uranium enrichment, the United States will release some of the frozen funds in the final negotiations.
According to the terms of the memorandum of understanding announced by the US and Iran, the United States agrees to grant exemptions for Iranian oil exports during a period of 60 days beyond the cease-fire agreement. Iran will gradually open the Strait of Hormuz, while the United States will lift the blockade on Iranian ports. The 60-day period can be extended with the consent of both parties.
But the memorandum of understanding between the US and Iran is not the final agreement. The ultimate solution will depend on whether the US and Iran can reach a nuclear deal. The memorandum states that both sides will find a mechanism to “mutually agree” on handling Iran’s enriched uranium. Currently, Iran has a stockpile of over 9,000 kilograms of enriched uranium, including 440 kilograms of highly enriched uranium close to weapon-grade concentration.
Trump stated on the 17th that as long as Iran behaves well, the United States will unfreeze its frozen funds and lift sanctions. During the G7 summit, he said, "We took their money, but it was their money after all. If we don't return that money, no one will invest in the US dollar anymore."
On the 18th, Iran's Supreme Leader, Ayatollah Ali Khamenei, stated that in order to reach a memorandum of understanding, Iranian officials have done a great deal of work with sincerity and goodwill. Meanwhile, the United States, under pressure, has used various means to push for the agreement.
He said, “I have different opinions in principle. However, given that the Iranian President, as the Head of the National Security Council, has promised me to safeguard the rights of the Iranian National and Resistance Front, and has clearly taken on the relevant responsibilities, I granted the permission.”
Mujtaba emphasized that Iranian President Ebrahim Raisi has clearly stated that if the United States makes excessive demands, Iran will not accept them. The Iranian side will now wait for the United States to fulfill all the conditions previously agreed upon. He added that future face-to-face negotiations do not mean that Iran recognizes the position of the “enemy”.
