Commodities June 11, 2026 04:30 AM

Iran and U.S. Move Toward Interim Understanding on Frozen Funds, Sources Say

Diplomatic exchanges continue as negotiators discuss mechanics for releasing billions in oil revenues amid ongoing strikes

By Jordan Park
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Sources from Iran and a European official say preliminary talks between Tehran and Washington have accelerated, with negotiators trading messages on a memorandum of understanding. While a political understanding appears to have been reached, key technical details remain unresolved, notably a mechanism for releasing tens of billions in Iranian oil revenues held in foreign banks. Iran seeks immediate access to $6 billion to $12 billion, but the U.S. prefers phased disbursements tied to humanitarian imports and rejects an outright handover.

Iran and U.S. Move Toward Interim Understanding on Frozen Funds, Sources Say
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Key Points

  • Negotiations between Iran and the U.S. have intensified, with exchanges of messages on a memorandum of understanding, according to three Iranian sources and a European official.
  • Iran seeks an immediate release of $6 billion to $12 billion from frozen oil revenues; the U.S. prefers staged releases tied to humanitarian imports and rejects returning funds outright.
  • The clerical establishment in Iran prioritises a limited framework to unlock frozen assets and halt hostilities to restore minimum breathing space for the regime.

DUBAI, June 11 - Three Iranian sources and a European official report that efforts to clinch a preliminary accord between Tehran and Washington have stepped up, even as both sides have carried out strikes during the current confrontation. Negotiators are actively exchanging messages about the specifics of a memorandum of understanding aimed at easing financial restrictions on Iran.

According to the Iranian sources, a political understanding has been achieved in principle, but several detailed issues remain unresolved. Central among those outstanding points is the technical mechanism for releasing the sizable sums of Iranian oil revenues that are frozen in foreign bank accounts.

One Iranian source provided a range for the immediate release Iran seeks, saying Tehran wants between $6 billion and $12 billion of its frozen funds to be returned. By contrast, U.S. officials are reported to favour a staged release of funds, conditioned on purchases of humanitarian goods, and explicitly oppose returning the assets to Iran in an unrestricted manner.

The Iranian sources emphasised that the clerical establishment's foremost priority is not to secure an all-encompassing settlement at this juncture. Rather, they describe the objective as obtaining a framework that creates enough breathing room for the regime - principally by unlocking frozen assets and bringing an end to active hostilities - to ensure its short-term survival.

Negotiations remain ongoing and technical because, while a high-level political accord may exist, the precise modalities for fund transfers and safeguards for how those funds would be used have not been finalised. The parties continue to exchange proposals on how to structure a mechanism that reconciles Iran's desire for access to funds with Washington's insistence on restricting use to humanitarian purposes.

Until those procedural and verification elements are settled, the Iranian sources and the European official say further detailed discussions are required to translate the political understanding into a functioning memorandum of understanding that can be implemented in practice.

Risks

  • Ongoing strikes by both sides could complicate or delay finalising the detailed mechanisms for releasing frozen funds, affecting oil revenue flows and banking operations.
  • Mismatch between Iran's demand for lump-sum access and U.S. insistence on phased, humanitarian-linked disbursements may prolong negotiations and sustain economic and political uncertainty.
  • Unresolved technical and verification issues mean the political understanding may not promptly convert into an operational memorandum, leaving frozen assets inaccessible in the near term.

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