US to unfreeze $6B Iranian assets for safe Strait of Hormuz passage
United States has agreed to release $6 billion in frozen Iranian assets held in Qatar and other foreign banks in exchange for guaranteed safe passage through the Strait of Hormuz, according to a senior Iranian official speaking with Reuters Saturday. The Iranian official described this move as demonstrating 'seriousness' in ongoing US-Iran negotiations in Islamabad, Pakistan.
The $6 billion, initially frozen in 2018 when President Trump reimposed sanctions and withdrew from Iran nuclear deal, originated from Iranian oil sales to South Korea. Funds were scheduled for release in 2023 as part of prisoner exchange, but Biden administration re-froze them after October 2023 Hamas attacks on Israel.
Strait of Hormuz is critical global shipping route through which 20% of world's oil passes. Current tensions have disrupted oil shipments, affecting global prices and supply chains. The asset release could de-escalate regional tensions and stabilize oil markets.
US has not yet officially confirmed the agreement. If finalized, this deal would represent significant diplomatic progress and potentially reduce military risks in the Persian Gulf region affecting global energy security.