Frozen Iranian funds emerge as key test for Trump’s Tehran deal, as US and Tehran spar over access to frozen assets.By World Israel News StaffA dispute over billions of dollars in frozen Iranian assets is emerging as one of the first major tests of President Donald Trump’s new agreement with Tehran, with Iran pressing for access to funds it says belong to the country and US officials insisting that any release must be phased, restricted and tied to Iranian compliance.The disagreement centers on as much as $24 billion in blocked Iranian funds, a figure repeatedly cited by Iranian media and officials during negotiations over a memorandum of understanding meant to extend a ceasefire, ease tensions around the Strait of Hormuz and open a 60-day window for a broader nuclear and regional agreement.Iran has pushed for at least part of the money to be made available immediately, while Washington has argued that funds should be released only through controlled mechanisms, including humanitarian channels, and only as long as Tehran participates constructively in negotiations.“There are effectively two competing narratives about frozen funds,” said one expert cited by Fox News. “Iran presents them as its own money being unlawfully withheld, while Washington sees them as leverage that should only be released in stages and under strict conditions.”Reuters reported earlier this month that Iranian and Western sources said the two sides were haggling over “a mechanism for the release of tens of billions of dollars of Iranian oil revenues frozen in foreign banks.”“Iran wants $6 billion to $12 billion of its frozen funds to be released to Tehran, while Washington wants to release funds in stages for humanitarian goods and rejects returning funds to Iran outright,” one Iranian source told Reuters.Another Iranian official said talks were continuing over how much money would be released immediately and what timetable would govern the remaining $12 billion during the 60-day period.A senior European official described the talks as focused on both the scale and structure of any liquidity Tehran would receive.“Right now, talks are focusing very precisely on the technical details and the financial amount — in short, the level of liquidity available to Iran,” the official said.The issue has been a recurring point of friction since before the latest memorandum was signed.Multiple outlets reported last month that Iran was seeking the release of $24 billion as a central condition in Qatar-hosted talks, with Iranian negotiator Mohammad Bagher Ghalibaf pushing for an immediate $12 billion release and another $12 billion later.“No agreement is possible until the agreed-upon funds are deposited,” a source told Iran’s Fars news agency.Iranian state media later claimed that a draft US-Iran arrangement would allow for the release of $24 billion in blocked funds during the 60-day negotiation period, with half of that amount made available before negotiations began.The Trump administration disputed Iranian descriptions of the emerging agreement. Trump accused Tehran of leaking false terms and said the Iranian version “had nothing to do” with what had been agreed to.“The terms that Iran leaked out to the Fake News have nothing to do with the terms that were agreed to, in writing,” Trump wrote on Truth Social. “Very dishonorable people to deal with. With them, there is no such thing as dealing in good faith.”A senior Trump administration official also said the arrangement would be performance-based and that frozen assets would not be released unless Iran fulfilled its obligations.The administration has framed the interim deal as a way to test Iran’s intentions while avoiding a wider war and keeping the option of renewed sanctions or military action on the table. One senior US official told reporters that Washington was entering the process with a deeply skeptical view of Tehran.“We come in with the full expectation that they will lie and they will cheat,” the official said, arguing that any final deal would need a verification and enforcement mechanism capable of detecting violations.Still, the economic incentives offered to Iran have drawn criticism from conservatives, pro-Israel voices and some foreign policy hawks, who argue that Trump is giving up leverage before Iran has agreed to dismantle nuclear infrastructure, dispose of enriched uranium or curb support for regional proxy groups.Supporters of the deal say controlled access to Iranian funds could help keep negotiations alive, lower regional tensions and create incentives for Tehran to accept stricter limits later. Critics say even limited financial relief could stabilize Iran’s economy and free up resources for its military and regional allies.The Wall Street Journal reported that the US and Qatar have discussed a mechanism that would initially make $6 billion in Iranian funds held in Qatar available for humanitarian purchases, including food and medicine. Under that model, Iran’s central bank would order goods, while Qatar would permit purchases using money drawn from frozen assets.Sanam Vakil, Middle East director at Chatham House, told the Journal that even narrow releases can carry significance beyond their dollar value.“Even limited asset releases function as both economic lifelines and political signals of de-escalation,” Vakil said.The post Could fight over Iranian assets sink Trump’s Iran deal? appeared first on World Israel News.