Qatar, U.S. Draft Plan to Unfreeze Iranian Funds for Humanitarian Use

Qatar and the United States are building a mechanism that would give Iran access to some of its frozen money, according to The Wall Street Journal. The funds would be used for humanitarian needs only, through controlled transfers overseen internationally and coordinated with the relevant authorities in Qatar and the U.S.

Under the proposal, Iran’s central bank would be able to place orders for humanitarian goods, and payment would come from frozen assets. Most of the money comes from oil sales that were blocked by sanctions. Washington sees the arrangement as a possible model for other frozen Iranian funds worldwide.

The plan is still limited and conditional. Western officials say any easing would be gradual and would depend on Iran’s behavior. An American official said the money would be released only if Tehran meets its commitments under the emerging understandings and cooperates in the diplomatic process.

Tehran is reportedly seeking the immediate release of about $24 billion from blocked funds. The proposed Qatar mechanism would also increase transparency over Iranian purchases and give the U.S. stronger monitoring power, while preserving leverage over Iran. Talks on the Qatar-held funds began at the end of May, when Mohammad Bagher Ghalibaf, the speaker of Iran’s parliament and head of its negotiating team, visited Doha. Those contacts, according to the sources, helped revive progress toward the current framework.