Published on 6/24/2026
Successive Iranian and American statements revealed a discrepancy in reading the destination of the Iranian funds released under the recent understanding between the two countries, as Washington talks about spending it exclusively on American food and medical goods within a joint monitoring mechanism, while Tehran confirms that there is no contractual obligation that restricts its decision regarding how to use these funds.
The Governor of the Iranian Central Bank, Abdel Nasser Hemmati, said on Tuesday that Iran may use the funds released under the understanding with Washington to buy American agricultural products, but at the same time he denied that Tehran was obligated to spend these funds exclusively on American exports, as US President Donald Trump announced.
Hemmati explained that the initial amount released, amounting to $12 billion, will be used to purchase “basic goods and medicines,” adding that this will allow Iran to direct its regular resources to other needs.
Hemmati’s statements came after Trump announced that Iranian funds would be used exclusively to purchase food and medical equipment from the United States, including corn, wheat, and soybeans from American farmers.
But the Governor of the Central Bank of Iran said that this proposal is “incorrect,” stressing that “there is no condition of this kind in the memorandums that were signed during the negotiations,” and that “there is no commitment to purchase from the United States.”
However, Hemmati did not close the door on the possibility of purchasing from the American market. He made it clear that Tehran does not see a problem in purchasing goods from the United States if the prices and quality of basic products, whether corn, wheat, or others, are competitive and meet the country’s needs.
The Iranian rejectionist position was not limited to the governor of the Central Bank, as Iran’s representative to the United Nations, Ali Bahraini, on Tuesday rejected the idea of American control over spending.
He said, “Iran is the only country that decides what to do with its assets,” adding: “I reject any claim that any other country will have an influence on those decisions or those operations,” according to CNN.
The novel The American Negotiator
Senior American officials provided a more detailed picture of the money control mechanism. Vice President J.D. Vance said on Monday that Trump’s son-in-law and one of the most prominent negotiators, Jared Kushner, had drawn up a plan under which spending the money would be subject to the approval of the United States and Qatar, with “the money then actually going to buy American soybeans, American corn, and American wheat for the benefit of the Iranian people,” according to what CNN reported.
Vance added: “If the Iranian assets were one day released, they would make American farmers richer and help feed the Iranian people.”
The American delegate to the United Nations, Michael Waltz, said – in statements reported by Fox News – that the Iranians “will buy American crops,” but when he was asked about the tightness of the agreement, he hinted that “it is still being crystallized,” saying that “how we control the money is subject to negotiation now at this moment.”
Funds released and place of detention
The Financial Times reported that the Trump administration agreed to allow Iran to begin accessing $6 billion of its oil funds held in Qatar to purchase American products, following the first round of high-level talks between the two sides.
The newspaper explained – quoting an informed person – that the amount will be released in stages according to the progress of the negotiations, and that an additional 6 billion may be released according to the same framework if Iran spends the funds detained in Doha.
According to the newspaper, the $6 billion detained in Qatar was previously kept in South Korea before it was transferred to an account in Doha following a prisoner exchange agreement concluded by the Biden administration with Tehran in September 2023.
There are no official figures for the amount of Iranian funds frozen abroad, but unofficial figures indicate that there are about 50 billion dollars in China, Iraq, Japan, and South Korea and cannot be transferred to Iran due to sanctions.
Account of the American elections
The Trump administration’s confirmation of directing funds toward American agricultural products comes with internal criticism, including criticism from hawks in his party.
It appears that Washington’s insistence on this approach may resonate with farmers, a key Republican base, before the midterm elections in November, especially in the Midwest and the South.
CNN indicated that Washington made its claim about spending money on American products in the context of confronting criticism that Tehran might use the money – along with at least $300 billion in reconstruction funds – to rebuild its army or finance “terrorism.”
On June 14, Iran and the United States announced that they had reached a 14-item memorandum of understanding, mediated by Pakistan, aimed at stopping the war and resolving differences between the two parties through dialogue and negotiations.
The memorandum, known as the “Islamabad Understanding,” entered into force on June 18, after it was signed electronically by Iranian President Masoud Pezeshkian and his American counterpart, Donald Trump.
The understanding includes provisions related to ending the war, including in Lebanon, reopening the Strait of Hormuz, and lifting the naval blockade imposed by the United States on Iran.
