President Donald Trump said on June 23 that funds released from frozen Iranian accounts will be controlled by the United States and must be used only to buy food and medical supplies from US suppliers [1, 2, 3]. He emphasized the humanitarian need due to Iran’s 91 million population, stating, “All that money’s coming back in the form of purchases of food which they desperately need. They have 91 million people, they can't feed them. So, the money that we lift is going to go to our farmers” [4, 5]. Trump added, “I will do what I have to do if Iran does not stick to its agreement” with Washington [4, 5].
The comments come amid a dispute with Iran over the terms of an interim deal signed on June 15-16 between Trump and Iranian President Masoud Pezeshkian. The deal followed a period of heightened tensions, including recent US and Israeli attacks on Iran and Iran's retaliations [4, 5]. According to a report citing Deputy Foreign Minister Kazem Gharibabadi, $12 billion of frozen Iranian funds are expected to be released in two equal tranches, though the US has not confirmed exact amounts [3].
Iran’s Central Bank governor Abdolnaser Hemmati publicly disagreed with Trump’s interpretation on June 23. Hemmati said Tehran has no obligation to purchase agricultural products exclusively from the US under the current memorandum of understanding. He stated, “Based on the signed memorandums, there is no obligation to buy agricultural inputs from the United States” [6]. Hemmati explained that the first $6 billion tranche is designated under a 2023 agreement for essential goods and medicines, but the remaining funds may be used to buy other non-sanctioned goods [6].
The disagreement centers on how Iran can use the unfrozen assets and the scope of the deal’s restrictions. Trump insists the funds must benefit US farmers and medical suppliers, while Iranian officials maintain more flexible usage rights within the deal’s framework.
The next key development will be how both sides implement or contest the conditions of the interim agreement signed last week and whether Iran complies with the US demands on fund usage.
