Major dispute to threaten Trump's Iran deal over billions in frozen Tehran funds: expert

As U.S. and Iranian negotiators met successful Switzerland connected Sunday, a location expert warned that a conflict complete billions successful perchance unfrozen Iranian assets could quickly trial nan durability of a fledgling interim agreement.

The disagreement is emerging, they say, arsenic Washington and Tehran statesman implementing nan memorandum of knowing signed June 17, pinch negotiators holding nan first information of talks astatine Bürgenstock, adjacent Lucerne, Switzerland.

According to Iran International, President Masoud Pezeshkian had signaled Tehran's expectations early Sunday, saying, "$6 cardinal of our costs successful Qatar will beryllium returned. Trump, who tried to contradict Iran its rights, acknowledged them successful his caller speech."

The conflict traces backmost to discussions astatine nan G7 acme successful Évian-les-Bains, France, wherever world leaders debated nan issue.

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As U.S.-Iran talks opened Sunday successful Switzerland, a conflict complete who controls and monitors billions of dollars successful perchance unfrozen Iranian assets emerged. (Fabrice Coffrini/Pool via REUTERS)

"We person taken their money, it isn't our money, it is their money, and we froze it," President Donald Trump said. "At a definite constituent successful time, I conjecture we're going to person to springiness it back."

He besides stressed that immoderate entree to nan costs remains strictly conditional, penning connected Truth Social that Iran would person "not 10 cents" during nan 60-day speech play if it grounded to uphold its commitments.

"There are efficaciously 2 competing narratives astir nan stiff funds," Alex Vatanka, a elder chap astatine nan Middle East Institute, told Fox News Digital.

"Releasing stiff assets is not simply an economical question. It is 1 of nan cardinal governmental tests of spot betwixt Tehran and Washington and will apt go 1 of nan first awesome implementation disputes successful nan weeks ahead," Vatanka added.

Paragraph 11 of nan MOU model states that nan United States "undertakes to make afloat available" restricted and stiff Iranian funds.

However, nan statement ties immoderate merchandise of costs to a step-by-step process based connected compliance, alternatively than granting immediate, unrestricted access.

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The U.S. delegation, including Steve Witkoff, JD Vance and Jared Kushner, arrived successful Switzerland connected Sunday. (Nathan Howard/Pool/REUTERS)

"First, location remains sizeable uncertainty complete nan full magnitude of Iranian assets stiff abroad," Vatanka said.

"Iranian officials often speak of much than $100 billion, while Western estimates scope higher. The contiguous negotiations, however, look focused connected securing entree to astir $24 cardinal to $25 cardinal arsenic an first tranche."

Iran's stiff assets are wide estimated astatine betwixt $100 cardinal and $120 cardinal and held nether sanctions and financial restrictions successful countries including China, India, Iraq and South Korea, according to reporting by nan Wall Street Journal.

Vatanka said nan cardinal conflict extends beyond nan size of nan payout.

"The existent conflict is not simply astir really overmuch money Iran receives, but who yet controls really it is spent."

"Iranian officials are emphasizing sovereignty complete nan funds, while nan United States is trying to sphere leverage by attaching conditions to their use," he added arsenic talks sewage underway Sunday.

In a connection connected X, Qatar's Foreign Ministry said nan talks are aimed astatine reaching a comprehensive and lasting agreement covering each elements of nan framework.

Spokesman Majed bin Mohammed Al Ansari said method teams were negotiating nan last woody while oversight groups would show implementation and way progress.

The U.S. and Qatar are exploring a system to transmission an first $6 cardinal toward humanitarian purchases, including food and medicine, according to reports.

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Hezbollah terrorists holding rifles are shown successful this image. A "terrorist network" funded and operated by Hezbollah and Iran was foiled successful nan United Arab Emirates, according to a report. (Fadel Itani/NurPhoto via Getty Images)

However, Western intelligence officials stay concerned that unfrozen costs could beryllium diverted to location conflicts alternatively than home improvement projects.

Reuters reported that Iran has already signaled to Hezbollah that accrued financial support could resume if Tehran's rate travel improves.

"This rumor besides has an important location dimension," Vatanka said. "Iran has pledged to nonstop a information of those reconstruction costs toward supporting its weakened proxy web successful Lebanon."

"The United States has insisted that Iran cannot usage immoderate unfrozen assets to fund violent organizations, informing that entree to nan costs would beryllium revoked if Tehran violates nan position of nan agreement," he added.

Vatanka said nan 2 sides besides stay divided complete nan broader intent of nan agreement.

"Tehran is presenting nan astir $25 cardinal arsenic money that will beryllium released gradually and invested successful rebuilding nan country's infrastructure, pinch officials talking astir roads, airports, carrier corridors and projects that visibly use mean Iranians."

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"Washington, however, appears to beryllium describing thing overmuch narrower," Vatanka added.

"U.S. officials person indicated they want nan costs released done controlled mechanisms, chiefly for humanitarian and different approved civilian purchases, alternatively than giving Tehran unrestricted access."