Frozen Assets Standoff Threatens Iran-US Peace Deal and Regional Escalation
Politics

Frozen Assets Standoff Threatens Iran-US Peace Deal and Regional Escalation

Negotiations concerning a potential peace agreement between Iran and the United States are reportedly linked to the release of nearly $24 billion in frozen Iranian assets. Mohsen Rezaei, who serves as a military advisor to Supreme Leader Ayatollah Mojtaba Khamenei, told CNN that the discussions have reached an impasse, asserting that US President Donald Trump must resolve this blockage. Rezaei stated that the “ball is now in Trump’s court.”

According to reports, Iran has requested the release of $12 billion in frozen funds immediately following the signing of a preliminary agreement with the United States, with an additional $12 billion expected later on. However, US officials have expressed concerns that releasing these funds at this stage could neutralize a critical leverage point against the Iranian regime.

Rezaei warned that if the US were to resume military actions, Iran would expand the conflict beyond the Persian Gulf. This escalation could potentially involve military operations spanning from the Gulf across the Indian Ocean, the Bab-al-Mandab Strait, the Red Sea, and the Mediterranean. He also dismissed the possibility of a direct summit meeting between Trump and Khamenei, claiming that negotiations were currently in their initial phase, which he asserts Trump has stalled.

Meanwhile, US military forces reported intercepting missiles and drones launched by Iran toward the Strait of Hormuz and the Gulf region on Saturday, prompting siren alarms in Kuwait and Bahrain. Iranian media claimed that Tehran fired the shots as a “warning measure,” suggesting they might have been linked to US naval vessels in the area. In response, the US military conducted attacks targeting coastal targets within Iran, reportedly including radar installations.

In separate regional news, the Lebanese army reported that a Lebanese general was killed during an Israeli strike while in Lebanon, with local state media noting that more than 20 people died in connection with the attack.