The United States and Iran are discussing the release of billions of dollars in frozen Iranian assets as part of an emerging framework to halt months of conflict, even as both sides intensified military operations this week, according to Reuters.
People familiar with the talks told Reuters that negotiators have reached a broad political understanding but remain divided over how Iranian funds held abroad would be released. The discussions come as U.S. forces carried out fresh strikes against Iranian military targets and Tehran condemned the attacks as a violation of international law.
One source familiar with the negotiations told Reuters: "Iran wants $6 billion to $12 billion of its frozen funds to be released to Tehran, while Washington wants to release funds in stages for humanitarian goods and rejects returning funds to Iran outright."
The disagreement over the funds remains one of the final obstacles to an interim arrangement aimed at ending a conflict that has intensified despite repeated suggestions from both sides that diplomacy remains possible.
Reuters reported that Iranian officials believe progress has been made toward a political understanding, although negotiations continue over technical details involving foreign banks and the mechanism for releasing the money.
The diplomatic activity comes against a backdrop of renewed military action. On Wednesday, U.S. Central Command announced strikes against Iranian military infrastructure, including surveillance systems, communications networks and air-defense sites.
"CENTCOM forces launched strikes on Iranian military surveillance capabilities, communication systems, and air defense sites across Iran," the command said in a statement. "The strikes are in response to Iran's unwarranted and continued aggression."
Iran's Foreign Ministry responded by condemning the attacks as a "flagrant violation" of international law and said they had "effectively rendered the April 8 ceasefire meaningless." The ministry warned that the Trump administration would bear responsibility for the "extremely dangerous consequences" of the strikes.
Meanwhile, the Persian Gulf Strait Authority announced that the Strait of Hormuz would be "closed until further notice," citing regional tensions and decisions by Iranian military authorities. The waterway remains one of the world's most important energy shipping routes.
Despite the escalating rhetoric, some officials continue to see room for diplomacy. An Iranian source told Reuters: "The recent military confrontations could be preparations for announcing an agreement. Of course, anything is possible, even a return to full-scale war."
