31 mins ago – 12.42AMBloombergPresident Donald Trump said Iran will only be able to use funds released from frozen accounts to purchase food and medical supplies from the US, addressing a major hurdle in peace negotiations that both sides say are making progress.“The Money and/or Sanctions that the US Treasury is releasing goes into escrow, controlled by the USA, and will be used for the purchase of food and medical supplies, exclusively from the United States,” Trump said in a post on Truth Social on Tuesday.Trump is on the back foot over his Iran deal. BloombergEarlier, Iran’s Foreign Ministry spokesman Esmail Baghaei disputed that notion, saying the funds would be used by his country “freely, in whatever manner it deems appropriate,” rather than being restricted to purchases from the US.Iran said $US12 billion of its frozen funds are set to be released as part of ongoing talks, in two equal instalments, according to a report by the Mehr news agency, citing Deputy Foreign Minister Kazem Gharibabadi.The US is yet to confirm how much the Islamic Republic will get, with the release set to be part of the terms under discussion to end the near four-month war and keep the Strait of Hormuz open.Trump’s post underscores the US president’s defensiveness over the deal as it draws criticism from defence hawks in his own party. US farmers, particularly in large swaths of the Midwest and south, are a key political constituency for Trump and Republicans — and one they will need to energise ahead of the November midterm elections.Some critics of the memorandum of understanding signed last week fear the Islamic Republic will use the money to rebuild its armed forces and continue to support militant groups such as Hezbollah.