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US-Iran Indirect Talks: Frozen Funds, MOU, and Regional Tensions

Thursday, July 2, 2026
5 min read
US-Iran Indirect Talks: Frozen Funds, MOU, and Regional Tensions

The latest indirect talks between the United States and Iran happened in Doha, focusing squarely on that memorandum of understanding. It wasn't just talk; they were trying to figure out how to actually implement things.

We’re talking about a proposed release a potential $3 billion from those frozen Iranian funds. And setting up some kind of communication channel so everyone could report if the deal was being broken, or violated.

Iran’s Deputy Foreign Minister, Kazem Gharibabadi, announced that these talks wrapped up on Wednesday. He said they managed to aGree on something tangible: a way to record any violations of the whole aGreement. And he pushed for this channel to be set up by tomorrow.

But there was no direct meeting between the US delegation and the Iranian side itself. That’s what Gharibabadi noted. Everything went through mediators Qatar and Pakistan, it turned out. Axios picked up on that angle, saying negotiations ran entirely through those intermediaries.

And then you have the money part. Al Arabiya reported that an initial aGreement was reached to release that $3 billion during these indirect discussions in Doha. Iran tied the release of those frozen funds directly to progress in the negotiations. It’s supposed to be phased, released as they move forward.

But things got complicated quickly. A US official later told Al Arabiya something different entirely. He said no frozen funds had actually been released yet. Any future release depended entirely on Tehran meeting all the conditions written down in that memorandum of understanding. The sticking point was clear: “No frozen funds will be released unless Iran meets the requirements outlined in the MOU.”

That official also made a specific demand under the aGreement. He stressed that the US had to approve how those assets were used. If they were released, the money would be specifically earmarked for purchasing American agricultural products from farmers to feed the Iranian people. That’s the condition attached to any release. It felt very specific.

Meanwhile, Iran also brought up other sticking points. They discussed where the frozen funds were sitting in Qatar. And it seemed there was an aGreement that based on what Iran stated they needed, those required goods would be purchased and delivered directly to them. A sort of trade-off woven into the financial discussion.

The whole package touched on bigger regional headaches too. The talks weren't just about money. They looked at Lebanon. And obviously, the Strait of Hormuz was right there in the conversation. Iran accused Israel of undermining the deal by keeping forces in Lebanon. That’s one side of the story they presented. On the other hand, Iran insisted that the Strait of Hormuz falls under Iranian and Omani sovereignty.

Iran asked for things before moving on. They wanted five specific provisions from the memorandum to be implemented first. There was a lot going on simultaneously. Discussions were also ongoing about the Strait of Hormuz based on something Oman proposed. The delegations were supposed to go back to their home countries to hash out that proposal further.

Qatar seemed to be playing an important role in keeping things moving there, too. They said they saw positive progress on issues related to the Islamabad Memorandum of Understanding. Majed Al Ansari from Qatar’s foreign ministry spoke about this, noting that the mediators reached separate meetings with both US and Iranian negotiators today. He mentioned building on the outcomes from that Lake Lucerne Summit.

He also made it clear they wanted more time. The parties aGreed to keep talking over the next period. The next meeting would be scheduled as soon as possible, after the funeral processions for the former Supreme Leader. That sets a kind of timeline, doesn’t it? A very specific one tacked onto political events.

The actual negotiations started late Tuesday night and stretched into Wednesday across these indirect channels. They used separate sessions chief negotiators talking to technical experts, things like that. It wasn't a smooth, unified flow; it was fragmented back-and-forth.

It’s worth remembering that US envoy Steve Witkoff and Jared Kushner met with Qatar’s prime minister before everything kicked off. That was meant to lay some groundwork for the whole process. A bit of behind-the-scenes maneuvering happening while the public talks were going on in Doha about these very sensitive routes, like the Strait of Hormuz.

The administration side had its own view on what would actually work. They argued that a nuclear aGreement would offer Iran better economic benefits than just getting revenue from tolls through that strategic waterway. That’s the big philosophical difference they brought to the table.

And finally, there was that brief moment of de-escalation mentioned in the context of the Strait itself. Following some exchanges of fire on Sunday, both sides managed to aGree on a one-week pause in tensions in the Strait of Hormuz. A temporary breather before diving back into the deeper issues. It’s all moving, but it's messy.

Written by Gree News Team — Senior Editorial Board

Gree News Team covers international news and global affairs at Gree News. Our collective of senior editors is dedicated to providing independent, accurate, and responsible journalism for a global audience.

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