Negotiations between the United States and Iran have reached a significant stalemate, with Tehran insisting that billions of dollars in frozen Iranian assets be released during the very first phase of any MOU agreement, according to two sources familiar with the discussions who spoke to The Jerusalem Post.
The dispute has emerged as one of the central obstacles preventing progress toward a memorandum of understanding between Tehran and Washington, which would be just the first step towards a broader nuclear agreement. In recent days, regional mediators attempted to bridge the gap, proposing several compromise formulas. One of the option raised was a humanitarian fund of several billion dollars which would be only for the use of buying medicine, food and agricultural goods to Iran, one of the sources said.
However, Iranian negotiators are demanding immediate access to liquid funds as part of Phase A of a memorandum of understanding agreement, before implementing any substantive measures on the ground.
US officials have rejected the demand, arguing that sanctions relief and the unfreezing of funds must be tied directly to verifiable Iranian actions.
Washington will not release funds without Iranian concessions
Senior administration officials have communicated to mediators that Washington will not release any significant funds at the outset of an agreement without concrete Iranian concessions regarding its nuclear program and security arrangements related to the Strait of Hormuz.
US officials fear the unfreezing funds before would cause the US to lose a significant leverage, and make it harder to reach a concrete agreement on Iran nuclear program.