Iran, US finalise agreement on release of $12b in frozen assets

BUSINESS STANDARD - Ghalibaf said the agreement followed preliminary arrangements in Qatar and was formally signed in Switzerland, says Al Jazeera.

According to Ghalibaf, the $12 billion consists of two separate tranches of $6 billion that had remained frozen under previous restrictions. He described the release of the funds as one of the principal outcomes secured by Tehran under the memorandum of understanding.

"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 measures affecting several sectors. Ghalibaf said sanctions on crude oil exports, petrochemicals and related derivatives had been lifted until a final agreement is reached.

He said the measures also extend to the banking, insurance and transportation sectors.

The broader agreement is expected to support the resumption of maritime activity in the Strait of Hormuz, a key route for global energy shipments.

Former US Ambassador and former Deputy Assistant Secretary of State Henry Ensher said developments in shipping traffic suggested implementation of the agreement may already be underway.

"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 said movements in the Strait of Hormuz, including the passage of oil tankers, could provide a practical indication of whether the agreement was 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 suggested that Washington and Tehran appeared to be pursuing immediate objectives while also seeking to project political strength during negotiations.

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