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Tussle Over Frozen Iranian Assets, Strait of Hormuz

Tasnim, citing “an informed source,” reported that the US had agreed to the release of $6 billion in Iranian assets frozen in accounts in Qatar. The informed Iranian source “said that, as a result of pressure and negotiations, the American side has agreed to release Iran’s frozen assets and has announced that it has brought a team to Islamabad for consultations in financial areas so that both sides can reach a consensus on this matter,” Tasnim claimed. “However, given the history of broken promises and previous failures of the US to transfer Iran’s frozen assets, the Iranian side is seeking ways to ensure the seriousness of the US in this regard, the source added.”

A U.S. official “swiftly denied the assertion,” reported Reuters without further elaboration. A senior Iranian source “welcomed the purported U.S. move as a sign of ‘seriousness’ in reaching a deal with Washington in talks in Islamabad. The source said it was one of Iran’s demands ‘in messages conveyed to the U.S. side’ and that Tehran had received a U.S. agreement to release the assets” the Reuter report continued. “The source, who declined to be named due to the sensitivity of the matter, told Reuters that unfreezing the assets was ‘directly linked to ensuring safe passage through the Strait of Hormuz,’ which is expected to be a key issue in the talks.”

AT the same time, Iran denied that US Navy ships had passed through the Strait of Hormuz in both directions. AN unnamed US official told Axios that the move was not coordinated with Iran and was aimed at increasing confidence for commercial ships to cross, sources say. “This was an operation that focused on freedom of navigation through International waters,” the official said. The official claimed further that the Navy ships crossed the strait from east to west to the Gulf, and then made their way back through the strait to the Arabian Sea.

According to the Iranian side, there was one U.S. destroyer, not named, which came towards the straight out of Fujairah which then turned around and went back after warnings from the Iranians. According to WANA, the Iranian side told the Pakistani mediators that the US ship would be targeted in 30 minutes if it didn’t turn back, a warning which the mediators passed on to the US delegation in Islamabad.

“According to reports, the firm reaction of the armed forces, along with the warning and follow-up by the negotiating team, caused the order to stop to be issued to this ship,” WANA reported. “This responsible and firm approach by Iran, which is a sign of close accompaniment and coordination between the armed forces and the diplomatic apparatus, was highly praised by the Pakistani mediator.”