Iran, US finalize agreement for $12 billion frozen assets release

Iran and the United States have finalised an agreement focused on releasing $12 billion in frozen Iranian assets, according to Iran’s parliamentary speaker and chief negotiator Mohammad Bagher Ghalibaf. He said the deal is an immediate result of a broader memorandum of understanding between the two countries.

Ghalibaf said the agreement came after early arrangements in Qatar and was officially signed in Switzerland, says Al Jazeera.

He explained that the $12 billion includes two separate instalments of $6 billion each, which had been frozen under previous sanctions. He described the release of these funds as one of the key outcomes secured by Tehran under the agreement.

“The deal for the US to release $12bn in frozen Iranian assets had been finalised in Switzerland,” Ghalibaf told Iranian state media on Monday.

The agreement also includes temporary relief steps in several sectors. Ghalibaf said restrictions on crude oil exports, petrochemicals, and related products have been lifted until a final deal is reached. He added that the easing of measures also covers banking, insurance, and transport sectors.

The wider agreement is also expected to help restart maritime activity in the Strait of Hormuz, an important global energy route.

Former US Ambassador and former Deputy Assistant Secretary of State Henry Ensher said early signs in shipping traffic suggest that implementation may already be starting.

“Both sides are very interested to show that somehow they’ve gotten the upper hand or at least that they’re not being taken advantage of,” Ensher told Al Jazeera.

He added that activity in the Strait of Hormuz, including oil tanker movement, could show whether the agreement is actually being implemented.

“The only way that we can determine what actually is going on is when money begins to move and when things begin to happen on the ground,” he said. “Ships went through the Strait of Hormuz, including oil tankers. This means that money is flowing and both sides are getting what they want.”

Ensher said both Washington and Tehran appear to be trying to achieve quick gains while also showing strength during the negotiations.