US agrees to release Iranian funds ahead of Hormuz-linked Islamabad talks: Reuters

The United States has agreed to release frozen Iranian assets, signaling progress ahead of talks, with the move tied to securing Strait of Hormuz transit.

The United States has agreed to release part of Iran’s frozen assets held in Qatar and other foreign banks, according to Iranian officials who described the move as a sign of Washington’s seriousness ahead of high-stakes talks in Islamabad. The step is seen as an early confidence-building measure between the two sides.

According to Reuters, the release of funds is directly linked to ensuring safe passage through the Strait of Hormuz, a critical global shipping route that has seen major disruptions in recent weeks. The issue is expected to be a central focus in the negotiations.

A senior Iranian source said Washington has agreed to unblock around $6 billion in assets held in Qatar, although no immediate confirmation has been issued by US authorities. The move could help ease tensions and build momentum toward broader agreements.

The development comes as US and Iranian negotiators prepare to begin formal discussions following preliminary engagements with Pakistani officials. Islamabad is hosting the talks under tight security, positioning itself as a key mediator.

Analysts say the limited financial concession may reflect a tactical effort by both sides to reduce tensions while maintaining leverage, as disagreements persist over sanctions, regional conflicts, and security guarantees.

Iran has long sought access to billions of dollars in frozen assets abroad, while the United States has used sanctions as a central tool of pressure in negotiations.

While the release of funds signals potential progress, its impact will depend on whether both sides can translate initial steps into a broader and lasting agreement.

The post US agrees to release Iranian funds ahead of Hormuz-linked Islamabad talks: Reuters appeared first on Khaama Press.