U.S. and Qatar explore mechanism to release frozen Iranian funds

The United States and Qatar are reportedly developing a framework that would allow Iran to use part of its frozen overseas assets for humanitarian purposes, AzerNEWS reports, citing The Wall Street Journal.

The proposed arrangement, which is still being finalized, is expected to provide Tehran with access to a portion of the approximately $100 billion in Iranian funds currently blocked around the world. Most of these funds consist of oil revenues that have been blocked by international sanctions and are held in countries including India, Iraq, Qatar, and China.

The initiative would initially focus on $6 billion in Iranian assets held in Qatar.

Under the plan, Qatari authorities would facilitate payments for humanitarian imports requested by Iran’s central bank, including food, medicines, and other essential goods. The funds originate largely from Iranian oil revenues that have remained inaccessible due to international sanctions.

Washington is said to view the mechanism as a way to ensure that Iranian funds are used exclusively for humanitarian purposes while maintaining oversight of how the money is spent. U.S. officials hope the arrangement could provide relief to the Iranian population without easing broader sanctions on Tehran.

Image:Anmar Khalil / AP