Tehran citizens counting dollar bills [WANA/Reuters=Yonhap News Agency File Photo]

As the memorandum of understanding (MOU) for a ceasefire between the United States and Iran enters its final stages, the unfreezing of Iran's frozen assets has emerged as a "hidden obstacle."

While some in the U.S. state that Iran's frozen assets will only be released after specific conditions are met, Iran insists that the unfreezing must happen simultaneously with the MOU agreement. The release of frozen assets has been a consistently emphasized demand by the Iranian side, but confusion has arisen regarding the timing of its implementation.

Tasnim News Agency of Iran reported on the 24th (local time) that "frozen assets must be unfrozen as soon as the MOU agreement is announced and Iran must have full access to them," adding that "the U.S. continues to object to some provisions, including the unfreezing of Iranian frozen assets."

It further warned that "the possibility of the MOU agreement being canceled still exists," stating, "If the frozen assets are not unfrozen, it will be crossing one of Iran's red lines, and if that happens, there will be no agreement."

An Iranian official told The Washington Post (WP) that in the first stage of implementing the agreement, the U.S. would release $12 billion (approximately 18 trillion won) of frozen Iranian assets, mine-clearing operations would begin in the Strait of Hormuz, and the U.S. blockade would be lifted.

It appears that Iran has demanded the release of frozen assets, which can be quickly implemented and carries less political burden, to increase the feasibility of the MOU agreement and create minimal trust. Iran is also in urgent need of substantial foreign currency assets that it can readily access for post-war reconstruction, stabilization of public livelihood, and exchange rate management.

Iran's overseas frozen assets are estimated to be $100 billion (approximately 150 trillion won).

However, CNN reported the previous day, citing a U.S. official, that the easing of sanctions against Iran and the unfreezing of frozen assets would only be possible if the Strait of Hormuz is reopened and Iran fulfills the nuclear deal, such as abandoning highly enriched uranium.

Some Israeli media also reported that the U.S. government's policy is that frozen assets will only be unfrozen after Iran exports highly enriched uranium overseas.

In response, Iranian media strongly denied these reports, stating they were entirely untrue. They emphasized that nuclear issues are outside the scope of discussions at the MOU stage.

Amidst this, high-ranking Iranian officials, including Parliament Speaker and chief negotiator with the U.S., Mohammad Bagher Ghalibaf, and Foreign Minister Abbas Araghchi, visited Doha, Qatar, on the 25th, drawing attention.

Reuters reported that they would meet with Qatari Prime Minister and Foreign Minister Sheikh Mohammed bin Abdulrahman Al Thani to primarily discuss the Strait of Hormuz and highly enriched uranium issues. However, the presence of Iran's Central Bank Governor, Abdolnaser Hemmati, alongside them focused attention on the unfreezing of frozen funds, as Qatar holds a significant amount of Iran's assets in cash.

Among these are funds that were frozen in South Korea as a consequence of U.S. sanctions against Iran.

South Korea had purchased Iranian crude oil through a won-denominated settlement account opened in the name of the Central Bank of Iran at Woori Bank and IBK Industrial Bank in 2010. However, following the U.S. withdrawal from the Iran nuclear deal (JCPOA - Joint Comprehensive Plan of Action) in 2018, approximately $6 billion (about 9 trillion won at current exchange rates) accumulated in this account was self-frozen.

In September 2023, as a result of the prisoner exchange between the U.S. and Iran, these funds were all transferred to the Central Bank of Iran's account at Qatar National Bank (QNB) and used for the purchase of humanitarian goods for Iran. However, they were frozen again a month later due to the outbreak of the Gaza war.

In the future, if the U.S. and Iran reach a ceasefire agreement, Qatar could serve as a neutral channel where Iran's frozen assets abroad could be deposited, similar to the South Korean case.