Iran has pushed back against US claims that any frozen Iranian assets released under a framework deal would be used to buy American agricultural products but stopped short of ruling it out, as the proposal sparked a sharp backlash from the country’s hard-liners.The release of billions in Iranian funds held abroad is part of the memorandum of understanding (MOU) signed by Tehran and Washington on June 17 that aims to end months of war between the foes.US President Donald Trump said on June 23 that any unlocked Iranian funds would be used to purchase American corn, soybeans, and wheat. The money, he said, would be held "in escrow, controlled by" Washington and spent "exclusively" on American food and medical supplies.
But Iranian Central Bank Governor Abdolnasser Hemmati swiftly denied there was such an obligation. "Based on the signed memorandum, we have no requirement to purchase agricultural inputs from America," he said.He added that if American prices and quality proved more competitive than other suppliers, "there is no obstacle to purchasing from that country," noting that Iran's Agriculture Ministry had in recent years sourced imports through major American and European companies.Iranian Foreign Ministry spokesman Esmaeil Baqaei said on June 23 that Tehran would decide how to use any released assets "in whatever way is in the country's interest.""Therefore, there are no restrictions in this regard," he said.But Trump appeared to contradict those comments, writing in a Truth Social post on June 24 that some of Iran's frozen assets will be released "to our Farmers and Ranchers" for the "purchase of Corn, Wheat, Soybeans, and more." He added that food is "desperately needed in Iran, and we will be purchasing it for them exclusively from the United States."'Gifting' Billions To The USThe mere mention of Iran possibly buying US agricultural products using any of its unfrozen funds has angered Iranian hard-liners, and Trump's latest comments are likely to further fuel those divisions.Raja News, an outlet affiliated with the hard-line Paydari Front political faction, published two editorials on June 23 arguing that the food purchase mechanism violated the MOU signed last week.Article 11 of the agreement stipulates that frozen funds must be made "fully available" to beneficiaries designated by Iran's Central Bank.Raja News argued that the proposed US arrangement -- reportedly routing funds through Qatar to pay American suppliers -- amounted to a breach of the agreement before it had even been implemented.Around $6 billion in Iranian assets are believed to be held in Qatar. Billions more of Iranians funds are frozen in China, Japan, India, and elsewhere.Raja News criticized Iranian negotiators for agreeing to "gift" billions of dollars to the United States through this mechanism, arguing it would only embolden Washington to commit further breaches of the deal.
