Trump Open To Releasing Iran's Frozen Billions but Wants Nuclear Progress First, Us Official Says

President Donald Trump is prepared to offer Iran sanctions relief and release frozen Iranian funds in exchange for concrete steps on Tehran's nuclear programme before agreeing to a final deal, according to a US official.

The potential economic concession has emerged as Qatari and Pakistani mediators try to break a renewed diplomatic impasse between Washington and Tehran. A US official described the indirect discussions as 'positive and constructive', but stressed that there would be no final agreement unless the nuclear dispute was addressed.

The opening is significant because Iran has been pressing for access to frozen assets and sanctions relief while seeking an end to US restrictions affecting its oil trade.

Washington, however, is resisting Tehran's demand for economic concessions upfront. The disagreement over which side must act first has become one of the central obstacles to a settlement.

Trump Ties Economic Relief to Nuclear Concessions

Trump's latest position does not amount to an unconditional offer to release billions of dollars in frozen Iranian funds. Instead, US officials say sanctions relief and access to frozen Iranian money would be linked to measurable progress on the nuclear issue.

A US official told CNN that Trump was willing to provide sanctions relief and release frozen funds as part of a final agreement if Iran made 'concrete progress'. The official added that Washington and Tehran were communicating through mediators but remained divided over important details.

Axios separately reported that the two sides disagree over the timing of their commitments and which party should move first. Washington is also seeking assurances that Tehran will honour any new arrangement.

That sequencing question is crucial because Iran wants economic pressure eased as part of steps towards reopening the Strait of Hormuz, while the Trump administration wants nuclear concessions tied to any substantial financial benefits.

Iran Wants Billions Unfrozen

US Ambassador to the United Nations Mike Waltz said Iran's latest proposal called for access to billions of dollars in frozen Iranian assets, sanctions on its oil sector to be eased and the US naval blockade to end.

Under the proposal, the Strait of Hormuz would then reopen and the two sides would resume negotiations over Iran's nuclear programme, Reuters reported.

Trump rejected that version of the proposal, saying Iran was seeking a rapid agreement because of the economic pressure it faced. However, he subsequently indicated that further negotiations were expected.

The dispute builds on months of negotiations over Iranian assets. Reuters reported in June that Tehran had sought immediate access to billions in frozen oil revenues, while Washington favoured a phased mechanism rather than an unrestricted transfer.

The June US-Iran memorandum also explicitly addressed the frozen assets. Its published text said the United States would make frozen or restricted Iranian funds available upon implementation of the memorandum, with procedures for their release to be agreed during negotiations.

Nuclear Programme Remains the Main Hurdle

The renewed financial offer does not mean Washington has softened its core nuclear demand. Trump said during the UN General Assembly last week that talks with Iran were continuing while reiterating that the US would not accept Iran obtaining a nuclear weapon.

The administration also remains wary of Iranian commitments. US Ambassador to the United Nations Mike Waltz said Tehran had sought sanctions relief and access to frozen assets before substantive nuclear negotiations, with Iran offering to resume talks after those concessions were made.

Iran, meanwhile, has made sanctions relief and access to its frozen assets central demands in negotiations.

Strait of Hormuz Raises the Economic Stakes

The negotiations extend far beyond the nuclear programme because the Strait of Hormuz remains a major pressure point for global energy markets.

Oil prices climbed on Monday after Trump rejected Iran's proposal, with Brent crude trading above $105 a barrel during the session. The move illustrated how developments in the negotiations can quickly affect energy markets.

For Trump, the emerging offer therefore represents a conditional arrangement rather than an immediate financial benefit for Tehran: nuclear concessions could unlock sanctions relief and access to frozen assets, but Washington is signalling that any substantial economic relief would be tied to concrete progress on Iran's nuclear programme.