Trump Says Iran’s Unfrozen Funds to Remain Under US Control
(Bloomberg) — President Donald Trump said Iran will only be able to use funds released from frozen accounts to purchase food and medical supplies from the US, seeking to ease concerns about peace negotiations that both sides say are making progress.
The billions of dollars of unlocked financing will go “into escrow, controlled by the U.S.A.” and will be used for the purchase of US-grown products such as corn, wheat and soybeans, Trump said in a post on Truth Social on Tuesday.
He added that Iran had agreed to “highest level Nuclear inspections long into the future” in the parallel negotiation over Tehran’s atomic activities, a central part of the discussions to end the near four-month war and keep the critical Strait of Hormuz open.
However, Iran’s Foreign Ministry spokesman Esmail Baghaei disputed both notions, saying the funds would be used by his country “freely, in whatever manner it deems appropriate,” rather than being restricted to purchases from the US.
Baghaei also rejected Trump’s claims about nuclear inspections, saying “we have neither met with the director general of the International Atomic Energy Agency nor do we have any plans for the agency to inspect Iran’s nuclear facilities.”
Iran said $12 billion of its frozen finances are set to be released as part of ongoing talks, in two equal installments, according to a report by the Mehr news agency, citing Deputy Foreign Minister Kazem Gharibabadi. The US is yet to confirm how much the Islamic Republic will get.
Trump’s post underscores the US president’s defensiveness over the deal as it draws criticism from defense hawks in his own party. US farmers, particularly in large swaths of the Midwest and south, are a key political constituency for Trump and Republicans — and one they will need to energize ahead of the November midterm elections.
Some critics of the memorandum of understanding signed last week fear the Islamic Republic will use the money to rebuild its armed forces and continue to support militant groups such as Hezbollah.
Trump said talks were “going well,” echoing broadly optimistic comments from the various parties involved.
Plenty of other outstanding issues stand in the way of a firm deal, including over Israel’s conflict with Iran-backed Hezbollah in Lebanon. Israel’s ongoing military presence in the south of the country has been cited by Iran as a breach of the agreement, jeopardizing the talks.
A fifth round of US-mediated talks between Israel and Lebanon is taking place in Washington Tuesday, according to the Israeli embassy in the city.
Meanwhile, Secretary of State Marco Rubio is expected in the United Arab Emirates, as the US seeks to reassure regional allies the interim agreement it signed last week with Iran is good for their security and economies.
Rubio will also travel to Kuwait and Bahrain.
The Strait of Hormuz will be among the topics of discussion. Traffic through the vital waterway is increasing, pointing to growing confidence among shipowners and traders about sending vessels through as tensions ease.
Iran said Tuesday the Strait of Hormuz is “fully” open to commercial shipping and that large volumes of oil have crossed the chokepoint in recent days, its ambassador in Geneva said, according to the semi-official Iranian Students’ News Agency.
Exactly what open will look like remains unclear. Oman and Iran said they will begin talks on the future administration of strait, including services to be provided and “costs associated with them in accordance with international standards,” according to a joint statement.
In talks in Switzerland since Sunday, the US and Iran have agreed to set up technical working groups to deal with issues such as unwinding sanctions on the Islamic Republic and curbing its enrichment of uranium. Vance and Iran’s lead negotiator, Parliament Speaker Mohammad Bagher Ghalibaf, left Switzerland on Monday, though lower-level delegates are continuing discussions this week.
The two sides continue to frame the negotiations in ways aimed at their domestic audiences. The White House is seeking to reassure Iran hawks, while Tehran is portraying the agreement as a concession wrested from Washington.
The Islamic Republic’s military and infrastructure were battered by US and Israeli bombing from late February, but its closure of the Strait of Hormuz caused energy prices to soar and hurt Trump’s standing among Americans and allied countries.
Oil prices were lower on Tuesday, with Brent declining 1.3% to below $77 a barrel. It’s down from a high of around $125 in late April but still above pre-war levels, reflecting that it will take months for oil and liquefied natural gas flows through Hormuz to return to normal.
Ghalibaf said on his return from the talks that the Strait of Hormuz would never return to its pre-war state and Iran would administer the waterway in accordance with international law, the state-run Islamic Republic News Agency reported.
Vance said negotiators had “set up the mechanism” to ensure the strait remains open. When speaking earlier to reporters, he did not answer directly when asked if the US wanted Israel to withdraw troops from southern Lebanon.
Israel’s ambassador to the United Nations, Danny Danon, told Bloomberg TV that “unfortunately, it’s not the case” when asked if the Lebanese military can confront the Hezbollah militia on its own. “We are capable of fighting Hezbollah, but we are not eager to stay in Lebanon,” Danon added.
–With assistance from John Bowker.
(Updates with Israel comment on Lebanon peace talks in 11th paragraph.)
©2026 Bloomberg L.P.
