Iran says it will use frozen Qatar funds to buy 'required goods'

Iran will use part of its frozen funds held in Qatar to buy goods the country needs, Deputy Foreign Minister Kazem Gharibabadi said Wednesday. The announcement followed technical talks with Qatari officials in Doha, held under the memorandum of understanding that ended the war between Iran and the United States.

What will Iran's frozen funds in Qatar be used for?

Iran plans to spend part of its frozen funds in Qatar on goods the country needs, rather than converting the money to cash. Gharibabadi said Qatari officials, including the central bank, reviewed how to allocate part of the initial six billion dollars based on needs Iran communicated during the Doha talks, according to IRNA.

It remains unclear how the release mechanism will work or when it will take effect. Under the memorandum of understanding that halted the war, Washington agreed to make Iran's frozen or restricted assets available as part of implementing the agreement.

How much money does Iran have frozen in Qatar?

Gharibabadi's six billion dollar figure refers to part of Iranian oil revenue transferred from South Korea into restricted accounts in Qatar since 2023. Iran's chief negotiator, Mohammad Bagher Ghalibaf, said Tuesday that twelve billion dollars of the country's twenty-four billion dollars in frozen assets are to be handed to Iran's central bank. He said the bank could then purchase any goods Iran needs, at any price and in any currency, worldwide.

What has Iran said about its right to use the funds?

Iranian foreign ministry spokesman Esmaeil Baqaei said last month that Tehran alone would decide how to use the released assets, in whatever way is most beneficial to the country. He added that the funds would be available for Iran to use freely to supply the goods it needs.

What has the US said about the frozen assets?

US Vice President JD Vance said in June that the assets had not yet been unfrozen under the agreement. He added that if they were released, the US and Qatar would have approval over that process. Vance also suggested the money would go toward US goods, including agricultural products such as soybeans.

Ghalibaf rejected that characterization Tuesday, insisting the funds would be under Iran's own control once transferred to its central bank.