US Treasury to Oversee Release of Frozen Iranian Funds, Says Bessent

U.S. Treasury Secretary Scott Bessent said Wednesday that the Department of the Treasury will oversee the release of Iranian funds currently frozen abroad under a temporary nuclear agreement brokered by President Donald Trump, signaling tight Washington control over how the assets are disbursed.

Speaking on CNBC’s Squawk Box, Bessent stated that the funds, once released, would be subject to Treasury supervision in the Middle East as part of the implementation mechanism tied to the interim nuclear arrangement.

“A large portion of these funds will be directed toward the purchase of American food and pharmaceuticals,” Bessent said, reiterating the administration’s position that the released assets should be channeled into U.S. goods.

The comments underscore a key point of contention in the evolving agreement: the extent to which Washington can influence or effectively direct Iran’s use of previously frozen assets after their release.

According to Bessent, the initial tranche of funds is expected to be released through Qatar, with U.S. Treasury officials in Doha playing a supervisory role in monitoring how the money is allocated.

He suggested that the structure of the arrangement would ensure that the released capital is reinvested into American products, particularly in agricultural and pharmaceutical sectors.

However, the proposal has already drawn sharp resistance from Iranian officials, who rejected the idea that the United States or its partners should dictate how Tehran spends its own sovereign assets. Iranian representatives argued earlier this week that procurement decisions would be based strictly on price and quality rather than external political conditions.

The disagreement highlights a central unresolved question surrounding the agreement: whether the U.S. Treasury will have any legal authority over the funds once they are released, or whether Washington will instead rely on indirect influence through foreign banks, escrow mechanisms, and continued sanctions leverage.

Bessent’s remarks also reflect broader political sensitivities in Washington, where some Republican lawmakers have criticized the deal, arguing that it may grant Iran significant financial relief in exchange for what they view as only temporary diplomatic concessions.

The issue of frozen Iranian assets has long been one of the most contentious elements in U.S.-Iran relations, and the latest arrangement underscores the continued role of financial controls as a tool of foreign policy.