US, Iran Near Interim Deal as Talks Focus on Billions in Frozen Funds

The United States and Iran are moving closer to an interim agreement that could ease years of diplomatic and economic tensions, but disagreements over access to billions of dollars in frozen Iranian funds remain a significant obstacle, according to sources familiar with the negotiations.

Officials from both countries have reportedly made progress in indirect talks aimed at establishing a temporary framework that could reduce tensions while broader negotiations continue. The discussions are said to focus on sanctions relief, access to Iranian assets held abroad, and measures related to Iran’s nuclear program. Recent diplomatic contacts suggest both sides are seeking a limited agreement that could serve as a stepping stone toward a more comprehensive deal. Reuters reported that negotiations have advanced in recent weeks, although key issues remain unresolved.

One of the most contentious points involves Iranian funds frozen in foreign accounts due to international sanctions. Iranian negotiators are reportedly seeking access to several billion dollars in oil revenues and other assets currently held overseas. Tehran argues that the funds belong to the Iranian people and should be released as part of any confidence-building measures.

The United States, however, is said to be pushing for strict conditions on how any released funds could be used. American officials remain concerned that unrestricted access could undermine sanctions policies or be used in ways contrary to U.S. interests. As a result, discussions have focused on mechanisms that would allow the money to be used for humanitarian imports and other approved purposes.

Diplomatic sources indicate that while a broad political understanding may be emerging, the financial details have yet to be finalized. Negotiators are continuing to work through technical issues related to the transfer and monitoring of funds, which could determine whether an interim agreement is ultimately reached.

Analysts say a temporary deal could help lower tensions across the Middle East and create momentum for future negotiations on Iran’s nuclear activities and regional security concerns. However, any agreement is likely to face scrutiny from political opponents in both Washington and Tehran, where hardliners have expressed skepticism about concessions from the other side.

While neither government has officially confirmed the details of the ongoing talks, diplomatic efforts appear to be intensifying as both sides explore options for reducing tensions and preventing further escalation in the region.