WANA (May 25) – In its ongoing negotiations with the United States, Tehran has made the immediate release of its frozen assets a strict prerequisite for any agreement. This demand is deeply rooted in Iran’s profound mistrust of Washington, shaped by past experiences ranging from the JCPOA collapse to repeated sanctions.

 

Anyone familiar with the traditional Tehran Bazaar knows that merchants refuse to deal with untrustworthy buyers unless it is a “cash-only” transaction. Today, Tehran is applying this exact market logic to Washington, openly declaring: “Release our frozen funds before any agreement is signed.”

 

To understand Iran’s insistence on an upfront, cash-first deal, one must look at recent history. The collective memory of Iranians is filled with broken pacts. They remember how the flames of the 12-Day War and the subsequent Ramadan War ignited in the very midst of peace talks.

 

They have certainly not forgotten the Trump administration’s unilateral withdrawal from the JCPOA—a nuclear deal backed by global powers and secured by a UN Security Council resolution.

 

As noted by the New Indian Express, “With a single pen stroke, all those guarantees vanished, and Iran’s assets were once again taken hostage.” This bitter memory has fundamentally transformed Iranian diplomacy; Tehran no longer believes in Western “trust-building.”

 

An official familiar with the negotiations stated: “Our demand is the release of frozen assets—not in the future, but right now.”

 

The Economic Leverage Game

Donald Trump, who once believed Iran would collapse within three days of a U.S. assault, now faces his greatest challenge. The pressure to completely reopen the Strait of Hormuz—the vital transit route for one-fifth of the world’s oil supply—has severely strained the global economy.

 

Tehran is fully aware that simply sitting down at the negotiating table relieves immense political pressure from Trump, who faces daily domestic backlash over skyrocketing American gasoline prices. Iran has realized it should not play this strategic card for free.

However, opinions within Iran on how to leverage this position remain divided:

 

Economic expert Rahman Salehi highlights the profound impact a comprehensive U.S.-Iran agreement would have on the economy. He argues that Tehran should not hold a major grand bargain hostage over a few billion dollars in frozen funds, noting that simply lifting the economic blockade is a massive victory in itself.

 

University professor Saeid Nikisokhan strongly disagrees, stating: “First, this money belongs to the Iranian people, and negotiators have no right to waive it. Second, the U.S. must pay the price for its past breaches of trust. Iranian resilience outweighs American endurance, making a deal far more vital for Washington than for us.”

 

According to a report by a University of Tehran think tank, Iran’s frozen assets worldwide are estimated to be between $20 billion and $30 billion. Injecting this liquidity into the domestic economy could provide the necessary capital to launch a major national development program, effectively launching the country toward significant economic growth.