Bessent: "Iran Frozen Funds to Be Overseen by the U.S. Treasury"

[Financial News, New York = Lee Byung-chul, correspondent] A dispute is growing over control of frozen assets amid the tentative nuclear agreement between the United States and Iran. The U.S. has argued that the released Iranian funds will effectively remain under American oversight, while Iran has pushed back, saying it will decide how the money is used.
U.S. Treasury Secretary Scott Bessent said in a CNBC interview on the 24th, local time, that "a large portion of the released Iranian funds will be used to buy U.S.-made food and medicine" and that "the Treasury will oversee the handling of the funds in the Middle East."
Bessent explained that the initial funds are likely to be released through Qatar. He said, "Treasury officials in Doha will oversee the allocation process," adding that "the funds will be structured so they ultimately go back into purchases of U.S. agricultural products and pharmaceuticals."
U.S. President Donald Trump also claimed on social media the previous day that "the released funds will be held in a U.S.-controlled escrow account and used to buy American food and medical supplies, including corn, wheat and soybeans."
The remarks are also being read as a political message to conservatives in the United States. Even if sanctions on Iran are eased and frozen assets are released, the administration is emphasizing that the benefits will ultimately go to American farmers and the pharmaceutical industry.
Iran, however, immediately rejected the U.S. explanation.
Iranian officials said the previous day that "neither the United States nor any third country can decide how the frozen assets are used" and that "whether agricultural products are purchased will depend on price and quality."
As the two sides offer conflicting accounts, questions are also growing over whether the United States can legally control the funds. Washington says it can manage the flow of money through overseas financial institutions, escrow accounts and sanctions mechanisms, while Iran views that as a violation of sovereignty.
In particular, Bessent did not say how much money would be released first, which institution in Qatar would manage the account, or what specific enforcement measures would be used to prevent diversion of the funds.



[email protected] Lee Byung-chul, correspondent Reporter