The United States has agreed to release a quarter of Iran’s frozen funds — totalling tens of billions of dollars held in foreign banks — as part of a new diplomatic round mediated by Pakistan, a senior Iranian official told Reuters. The disclosure marks the most substantive US concession in the stalled talks since Pakistan began ferrying proposals between Washington and Tehran.
Tehran has shared a revised peace proposal with the United States through Islamabad, the source said, with terms broadly similar to an earlier offer Trump dismissed last week as “garbage.” A Pakistani source confirmed the latest text had been delivered to Washington but said progress was difficult: the sides “keep changing their goalposts,” the source said, adding “we don’t have much time.”
Alongside the frozen-funds concession, the senior Iranian source said Washington had shown more flexibility in allowing Iran to continue some peaceful nuclear activity under International Atomic Energy Agency supervision. Iran’s Tasnim news agency separately reported that the US had also accepted waiving oil sanctions during the talks themselves, although Tehran continues to press for full removal.
Iran’s Foreign Ministry spokesperson Esmaeil Baghaei confirmed Tehran’s views had been “conveyed to the American side through Pakistan” but gave no details. Washington did not immediately comment.
The Iranian proposal would focus first on ending the war, reopening the Strait of Hormuz — which Iran has effectively blockaded — and lifting maritime sanctions. The contentious issues of Iran’s nuclear programme and uranium enrichment would be deferred to later rounds of talks. Iran is also seeking compensation for war damage and a halt to fighting on all fronts, including Lebanon where Israel is engaged with Iran-backed Hezbollah.
The proposal lands hours after Trump warned on Truth Social that “the Clock is Ticking” for Iran and said the ceasefire was “on life support.” Trump is expected to meet top national security advisers on Tuesday to discuss options for resuming military action, according to Axios. The fragile truce is the only mechanism currently keeping Brent prices from spiking further as Sri Lanka subsidises diesel and petrol at Rs. 57 billion over three months.
Source: Ada Derana / Reuters.
