White House Dismisses Report on Iranian Funds Unfreezing

The White House denied claims of unfreezing Iranian funds blocked in international banks, as US and Iranian negotiators meet in Islamabad. Allegations emerged from an Iranian official, citing US willingness to release the funds. These assets, central in US-Iran relations, were originally blocked following Trump's withdrawal from the nuclear pact.

On Saturday, the White House categorically dismissed allegations of a US decision to unfreeze blocked Iranian funds as representatives from both nations prepare to meet in Islamabad for crucial ceasefire discussions, reported CBS.

The controversy arose following a report that cited an Iranian official who claimed that the Biden administration had greenlit the release of the funds. An anonymous source in the report suggested that the funds' release was tied to guaranteeing safe navigation through the Strait of Hormuz. The Iranian official termed the alleged US move as a sign of genuine intent to secure a formal agreement.

The $6 billion at the center of the dispute were initially frozen in 2018, then slated for release under a 2023 prisoner swap agreement, but subsequently refrozen after Hamas attacks on Israel in October 2023. These funds, derived from oil exports to South Korea, became subject to sanctions after the US exited the nuclear agreement. They were rerouted to Qatari banks, to be used solely for humanitarian purposes under strict US oversight.

(With inputs from agencies.)