US-Iran War Live Updates: US may unlock 16 billion dollars frozen funds for Iran amid ongoing peace talks
The United States and Iran are reportedly discussing a proposal that could allow Tehran access to over $16 billion in restricted funds held in Qatar and other global locations, according to a Politico report citing European officials and sources familiar with the negotiations.
The move is being seen as part of broader diplomatic efforts aimed at easing tensions and advancing a potential peace framework between Washington and Tehran. Earlier, the US had permitted limited use of these assets for specific humanitarian purchases, but later froze access during the Israel-Hamas conflict in 2023.
Under the current proposal, Iran would be allowed to use the frozen funds in a controlled manner without violating US sanctions. However, US officials, including Secretary of State Marco Rubio, have stated that no upfront sanctions relief will be offered before progress on Iran’s nuclear commitments and broader regional security issues.
The development comes amid intensified diplomatic activity, with discussions also focusing on de-escalation in the Strait of Hormuz and potential agreements linked to Iran’s nuclear programme and regional stability. While hopes for a breakthrough have risen, Iran has said it has not yet taken a final decision on any deal.
