US and Qatar Prepare Mechanism for Disbursement of Iranian Funds for Humanitarian Purposes

The United States government is reportedly working with Qatar to devise a plan to open access to billions of dollars in frozen Iranian funds. The move is part of initial financial incentives under a newly signed agreement aimed at ending tensions between the two countries. The plan, which is still being finalised, aims to give Iran access to the spending power of a portion of its total assets, estimated at US$100 billion worldwide. The initial phase will focus on US$6 billion held in Qatar. Under the proposed mechanism, Qatar will permit the purchase of food, medicine, and other humanitarian goods ordered by Iran’s Central Bank. The funds come from frozen Iranian assets, primarily oil sale revenues held abroad due to international sanctions. This facility in Qatar is expected to serve as a blueprint for handling other pools of Iranian funds in various countries. Tehran itself is targeting the immediate release of a first tranche of US$24 billion from the total blocked funds. Although the agreement was signed on Wednesday by President Donald Trump, the situation remains dynamic. Iran’s Supreme Leader, Mojtaba Khamenei, stated via platform X that Trump agreed to a cessation of hostilities out of desperation. The statement triggered a sharp reaction from Trump. ‘We did not meet because of desperation, Iran did. They are FINISHED! We will run this 60-day period. They will not get any money, not a penny!’ Trump retorted via his social media. Under the agreement, the US has committed to making Iran’s frozen assets fully available for use through a negotiated mechanism. Senior US officials stressed that the flow of funds will continue as long as Iran engages productively in nuclear talks scheduled over the next two months. The arrangement with Qatar is in addition to the billions of dollars in potential revenue Iran expects from oil sales, after Washington agreed to provide sanctions exemptions immediately upon signing the deal. This step was taken to reopen the strategic Strait of Hormuz for global energy trade. Critics argue the deal gives Iran a major windfall before it makes real concessions on its nuclear programme. However, Vice President JD Vance defended the policy, stating it would ease pressure on the global economy and prevent further conflict. For Iran, access to foreign currency is crucial amid an economic crisis marked by high inflation and a collapsing local currency. Iranian funds remain locked in several countries, including China, India, Iraq, and Qatar. The US has stressed that further sanctions relief will only be granted if Iran meets demands regarding its nuclear programme, including the surrender of enriched uranium.