The United States has agreed to unfreeze billions of dollars in Iranian assets as part of a framework peace agreement with Iran's increasingly hardline government, according to reports confirmed by the Financial Times on 23 May. The preliminary deal, announced by President Trump as "largely negotiated" following talks with regional leaders including Saudi Arabia, Pakistan, and Israel, is expected to be finalised in the coming days.
The agreement has drawn sharp criticism not only from Republican foreign policy hawks, who traditionally support assertive US engagement with Iran, but also from Democrats concerned about the terms. Senator Cory Booker, speaking on CNN, noted that Trump previously criticised President Obama's 2015 nuclear deal for releasing $50 billion to Iran, yet "the president's balance sheet is letting more than $14 billion go through." According to Axios, earlier negotiations discussed unfreezing up to $20 billion in Iranian funds held in foreign banks, though the exact figure remains under negotiation. Euronews reports that Iran holds over $100 billion in frozen assets globally, making their release a central Iranian demand.
The proposed deal, mediated by Pakistan and Qatar, would establish a 60-day ceasefire extension during which the Strait of Hormuz—closed since the conflict erupted on 28 February—would reopen, and Iran would be permitted to sell oil freely. According to Axios, this initial phase would set the stage for broader negotiations on Iran's nuclear programme. However, crucial details remain unresolved, particularly regarding Iran's highly enriched uranium stockpile. NPR reported that a senior Israeli official characterised the emerging agreement as "bad because it signals to the Iranians that they possess a weapon no less effective than a nuclear one, and that is the Strait of Hormuz."
The timing of the potential agreement coincides with Iran's annual Khorramshahr liberation commemorations on 24 May, marking the 1982 victory during the Iran-Iraq War. Some Iranians view the prospect of sanctions relief and unfrozen assets as a historic turning point, particularly given the country's severe economic crisis. Iran's inflation reached 68.1 per cent in February, according to Euronews, the highest since the Second World War. Critics warn, however, that the deal may lack adequate safeguards. Former Secretary of State Mike Pompeo argued on social media that the agreement would enable Iran to "build a WMD program and terrorize the world," while Texas Senator Ted Cruz expressed concern about providing billions to a regime "still run by Islamists who chant 'death to America.'"