US Wants Iran to Spend Frozen $12 Billion on American Crops, Tehran Rejects Condition
A new dispute has emerged between the U.S. and Iran over how Tehran's frozen funds should be used, with Washington urging Iran to buy American agricultural products.
The United States and Iran have entered a new phase of disagreement despite ongoing ceasefire negotiations in Switzerland. The latest dispute revolves around Iran's frozen assets worth $12 billion and how the money should be used once it is released.
According to U.S. Vice President JD Vance, the funds will not be transferred directly to Iran. Instead, Washington wants the money to be used to purchase American agricultural products such as wheat, corn, soybeans, and other food supplies. The proposal is intended to meet Iran's humanitarian needs while providing a financial boost to U.S. farmers.
U.S. President Donald Trump also backed the proposal, stating that the funds would remain under U.S. supervision and be used exclusively for food, medicine, and other humanitarian goods.
However, Iran has firmly rejected Washington's conditions. Iranian Foreign Ministry spokesperson Esmail Baghaei said that once the frozen assets are released, they belong entirely to Iran, and Tehran alone will decide how and where the money is spent. He emphasized that any imports would be based on quality, pricing, and national requirements—not political conditions imposed by another country.
Iran's Ambassador to Geneva, Ali Bahreini, also stressed that the use of Iran's own funds is a matter of national sovereignty and cannot be dictated by any foreign government.
Experts believe that this disagreement could complicate efforts to reach a broader peace agreement. While the two countries continue diplomatic talks, disagreements over sanctions relief and the use of frozen assets remain significant obstacles.
Trade between the United States and Iran is currently limited mainly to humanitarian goods such as food and medicines. Analysts say that even if an agreement is reached, Iran is unlikely to rely solely on American agricultural imports, meaning the dispute over the frozen funds is far from over.
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