Trump administration to release $6bn in Iranian funds for U.S. goods under interim deal

Traders Union
All News
Financial News
US releases $6bn Iran funds

Highlights

Trump administration authorizes phased release of $6bn in Iranian oil revenues held in Qatar, contingent on ceasefire progress and Strait of Hormuz reopening.
Iran may use these funds exclusively for American humanitarian and non-sanctioned goods, with asset access expanding if Tehran surrenders enriched uranium.
The U.S. grants Iran a 60-day waiver to export oil and lifts the naval blockade, as Iran anticipates $12bn total funds released and energy market tensions persist.

Phased funding linked to ceasefire and nuclear talks

As first reported by Financial Times, the Trump administration is allowing Iran to draw on $6bn of oil revenues held in Qatar under an interim understanding between Tehran and Washington. The money is due to be released in stages during the 60-day extended ceasefire, with access dependent on movement toward a final agreement and the reopening of the Strait of Hormuz.

The funds can only be used to buy American humanitarian and other non-sanctioned products, according to a diplomat briefed on the arrangement. A U.S. official also says Washington is prepared to release some frozen assets during final negotiations if Iran shows what the official calls "good behaviour," including handing over enriched uranium.

The administration is also granting a waiver for Iran to export oil during the 60-day period and is lifting its naval blockade on Iranian ports. The agreement further says the U.S. will terminate sanctions on an agreed schedule as part of any final deal, while both sides commit to resolving the fate of Iran's enriched uranium stockpile through a mutually agreed mechanism under International Atomic Energy Agency supervision.

Energy market pressure and political backlash

Iran holds tens of billions of dollars in oil money frozen at overseas central banks because of U.S. sanctions, including in India, Iraq, China and Japan. Iranian state-affiliated media says Tehran expects $12bn to be released during the interim period, while the $6bn tranche in Qatar was previously moved from South Korea to Doha after a 2023 prisoner-swap deal under the Biden administration.

That earlier arrangement was intended as a confidence-building step after nuclear talks had collapsed, but Iran did not gain access to the funds after Hamas's October 7, 2023 attack on Israel intensified regional tensions. President Donald Trump now defends the latest terms by saying the money belongs to Iran and that returning it under tighter conditions supports both humanitarian trade and U.S. producers.

The interim deal is already drawing criticism from some Republicans and other Trump critics, who argue Washington is offering Tehran too many concessions. The dispute comes as Iran's closure of the Strait of Hormuz, a route that previously carried about a fifth of global oil and liquefied natural gas flows, triggers a severe global energy crisis and heightens the market stakes of any agreement.

Our earlier coverage of the U.S.–Iran interim agreement explained how Washington and Tehran extended their ceasefire while setting conditions for sanctions relief, access to frozen Iranian funds, and a framework for handling Iran’s enriched uranium under IAEA supervision. We also noted that, despite some initial market relief tied to hopes of steadier Gulf shipping and a possible return of Iranian exports, traders remained cautious because key concessions and implementation risks were still unresolved.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.