The United States and Qatar are finalising a mechanism to allow Iran access to $6 billion of its frozen foreign reserves for humanitarian purchases, according to reports in the American and European press. The funds, currently held in Qatar, originated from Iranian oil sales that were blocked under sanctions. Under the proposed arrangement, Iran’s central bank would be permitted to issue orders for food, medicine and other essential goods, with transactions supervised internationally. The initiative is seen in Western capitals as a first financial incentive to keep Tehran engaged in comprehensive negotiations following a cease-fire memorandum signed electronically by the two parties on 17 June.

Viewed from Washington, the plan serves both as an immediate confidence-building measure and as a template for managing larger pools of frozen Iranian assets worldwide — estimated to total $100 billion. Senior US officials indicated that the flow of funds would continue only as long as Iran participates constructively in the 60-day talks mandated by the memorandum. Tehran, however, has not yet consented to the mechanism, and Iranian state media have characterised the proposal as merely one of many ideas that may be discussed. In a further sign of friction, Iranian leader Mojtaba Khamenei posted on social media that President Trump agreed to halt hostilities “out of desperation,” prompting an angry rebuttal from Trump, who insisted no money would be released if Iran violated terms. Nevertheless, diplomatic channels remain open, with US envoy Steve Witkoff travelling to Switzerland for a first round of nuclear negotiations, and Iran’s foreign minister Abbas Araghchi also expected to attend.

European analysts note that the Qatar-based model, if implemented, could unlock a much-needed lifeline for Iran’s crisis-hit economy, stabilising its currency and easing rampant inflation. The mechanism would also grant Washington greater oversight of Iranian imports and enhance leverage over Tehran’s future compliance. In the Gulf, the plan is closely watched by Saudi Arabia and the United Arab Emirates, whose diplomats emphasise that any sanctions relief must be strictly conditioned on verifiable limits to Iran’s nuclear activities. Critics in the US Congress, particularly among Republicans who opposed the 2015 nuclear deal, warn that the accord gifts Iran significant economic benefits before any real nuclear concessions are made. Supporters, including Vice-President JD Vance, counter that the arrangement lowers global energy costs by restoring the free passage of oil tankers through the Strait of Hormuz and cages Iran’s ambitions within a negotiated framework.

The cease-fire memorandum, signed after months of indirect talks mediated by Qatar, commits both sides to a final agreement resolving disputes over Iran’s uranium enrichment, the lifting of US sanctions, and the permanent reopening of the Strait of Hormuz. As part of the deal, Washington immediately began lifting its naval blockade and pledged to reinstate sanctions waivers for oil exports. More than two dozen rounds of follow-up negotiations are foreseen, though the initial meeting scheduled for 19 June in Switzerland was postponed amid escalating Israel-Hezbollah clashes. Iranian officials now say there is no urgency for an in-person summit, given the digital signing already completed, but concede that a gathering may take place “in the coming days.” The state of the dossier remains fluid: while the asset-unlocking plan advances, its final adoption hinges on political will in both capitals and on the trajectory of the nuclear talks, which are expected to intensify in July.