From bank accounts in China and Iraq to funds held in Qatar and South Korea, more than $100 billion (1,000 crore dollars) in Iranian-owned money is frozen abroad, and recovering it in negotiations with the Trump administration has emerged as one of Tehran’s central demands.
According to a report in The Wall Street Journal, Iranian officials are pressing for the phased release of at least $24 billion of their overseas assets as part of a broad effort to revive an economy battered by sanctions, inflation and years of isolation.
Tehran says more than $100 billion of its money is held abroad, though estimates of the funds held outside the country vary.
The issue has gained urgency as Iran and the United States move toward signing an initial ceasefire agreement. Such a deal could eventually lead to the lifting of sanctions, the resumption of Iranian oil exports, the return of frozen assets and a long-term framework for managing Iran’s nuclear program and maritime security in the Strait of Hormuz.
China holds the largest share
According to the Wall Street Journal report and other estimates, the largest portion of Iran’s frozen assets is believed to be in China, ranging from $20 billion to $50 billion. Most of that money accumulated over years of oil sales to China, which remains Iran’s biggest energy buyer despite U.S. sanctions.
Because most international energy transactions flow through the dollar-based global financial system, much of the money from Iran’s oil exports never reached Tehran due to sanctions. Some of the funds were used to buy Chinese goods and equipment, but a large sum remains frozen, according to reports.
India is among the countries holding hundreds of millions of dollars tied to oil purchases made before 2018.
Why the money is stuck
Most of the funds came from Iran’s sales of oil, gas and electricity. Because of U.S. sanctions, banks and the governments of various countries cannot transfer the money to Tehran.
Some funds can be used only to buy humanitarian goods such as food and medicine. In several bank accounts, the money is held in local currencies rather than U.S. dollars.
Why the money matters now
As part of its talks with Washington, Iran is now seeking the return of at least $24 billion. The frozen assets could give a major boost to a sanctions-hit Iranian economy.
In talks on lifting sanctions and a U.S.-Iran ceasefire deal, the frozen money has become a central bargaining tool.
If recovered, the money could help Tehran stabilize the value of its currency, finance imports and support its economic recovery.
Iraq, India and South Korea
An estimated $10 billion to $15 billion tied to purchases of Iranian electricity and natural gas is believed to be held in Iraq. Because of U.S. sanctions, Baghdad cannot freely transfer most of the money to Tehran.
India and South Korea each hold an estimated $7 billion. Both were among Iran’s largest oil buyers before Washington reimposed sanctions in 2018. The money from those crude purchases was later locked in local banking systems.
In 2023, about $6 billion held mainly in South Korea was transferred to Qatar as part of a U.S.-Iran prisoner-swap deal. The funds were earmarked for humanitarian use. But rules on using the money were tightened after the Hamas attack on Israel in October 2023.
Smaller sums are also believed to be held in Japan, Oman, Luxembourg and other countries, reflecting decades of sanctions-related disputes and restrictions on Iran’s financial transactions.
Why the money matters now
For an economy struggling under inflation, a weak currency and years of sanctions, recovering these frozen assets is one of the easiest ways to quickly secure hard currency.
For Washington, the funds have become a key bargaining tool. Reuters reported last week that Iran was pushing for the release of $6 billion to $12 billion as an initial step. U.S. negotiators have spoken of releasing the money in phases, tied to humanitarian spending and pledges of future compliance with any deal.
The Wall Street Journal reported that Iranian officials are seeking the return of at least $24 billion in frozen funds as part of a memorandum of understanding. A memorandum published by the Trump administration also speaks of unfreezing Iran’s seized money.
If Tehran’s years-long effort to recover the seized funds ultimately succeeds, it could prove one of its biggest economic rewards.
বাংলায় মূল প্রতিবেদন পড়ুন · Read the original Bengali report