Frozen Funds: The Battle for Iran-U.S. Peace

Efforts to broker an interim deal between Iran and the U.S. have intensified despite military strikes on both sides. Negotiations focus on releasing Iran's frozen funds, with differing views on terms. A strategic framework aims to ease tensions and avoid full-scale war.

Intensifying efforts to achieve an interim agreement between Iran and the United States have emerged, three Iranian sources along with a European official informed Reuters on Thursday. Despite the hostilities launched by both parties, negotiations are ongoing as both nations discuss the release of Iranian frozen funds. The memorandum of understanding continues to be the focal point of exchanges, with the core issue revolving around tens of billions of Iranian oil revenues stuck in foreign banks.

The talks, as reported by Iranian sources, have reached a sort of political consensus, though specific details remain unresolved. Iran is pushing for the release of $6 billion to $12 billion in frozen funds, whereas the U.S. prefers a phased release focusing on humanitarian goods rather than a direct transfer. According to a senior European official, current negotiations are honing in on technical details and financial amounts to determine Iran's liquidity level.

Analysts speculate that the recent military engagements could foreshadow an agreement, against the backdrop of U.S. President Donald Trump seeking a stronger deal than the 2015 nuclear agreement. Any potential agreement could avert an escalation to full-scale war, a scenario Tehran is eager to avoid due to economic imperatives and a war-weary populace.