Trump defends unfreezing Iran funds as part of deal
The comments underscore his defensiveness over the agreement, as it draws criticism from defence hawks in his party
Add BT as a preferred source
[WASHINGTON] President Donald Trump said Iran will be able to use funds released from frozen accounts only to purchase food and medical supplies from the US.
He was seeking to ease concerns about the peace negotiations that both sides say are making progress.
Yet, his comments were disputed by Iran, in the latest example of the two sides making conflicting claims about key issues including the status of nuclear inspections.
The back and forth on the issues which were actually agreed to last week runs alongside growing criticism in the US on the way the Trump administration has conducted the war.
The Republican-led US Senate voted on Tuesday (Jun 23) to end the US war with Iran, in a rare symbolic rebuke of Trump.
While the resolution is unlikely to force any changes in the administration’s strategy, it represents the latest sign that the president lacks domestic support for the effort.
Trump responded in a social media post that the US Senate had “decided to have a poorly timed and meaningless War Powers Act Vote” at a moment when he had Iran on the ropes, “ready to go down for the fall”, and “willing to give us practically anything”.
Iran and Oman, meanwhile, said they will begin work on finding an agreement over the future administration of the Strait of Hormuz, including the cost of managing transit in the key shipping lane.
More ships are transiting the strait with their satellite signals switched on, indicating growing confidence among shipowners and traders about sending vessels through the world’s most important energy chokepoint.
SEE ALSO
Oil prices fell with Brent trading 0.9 per cent lower at US$76.4 a barrel. That is down from a high of around US$125 in late April, as prices now approach prewar levels.
Conditional, performance-based negotiations
Treasury Secretary Scott Bessent told the Economic Club of New York that there is going to be an arc to the talks.
He said the US told Iran that it wants a big deal and is engaged in conditional, performance-based negotiations with Teheran, adding: “We are offering them carrots, and then there are sticks.”
Trump said the billions of US dollars in unlocked financing would go “into escrow, controlled by” the US and be used to purchase American-grown products such as corn, wheat and soybeans.
He also said in a social media post that Iran had agreed to the “highest level nuclear inspections long into the future”.
Earlier, a spokesperson for Iran’s foreign ministry, Esmail Baghaei, disputed that notion.
He said the funds will be used by his country “freely, in whatever manner it deems appropriate”, rather than it being restricted to purchases from the US. He added that no plans for new inspections by the International Atomic Energy Agency were in place.
“They’re wrong,” Trump told reporters, when asked about Baghaei’s comments. “They know they’re wrong. They told us inside and we have it down, 100 per cent inspections – and if they were right, I’d cancel the meetings right now.”
Trump’s comments underscore the US president’s defensiveness over the deal, as it draws criticism, including from defence hawks in his own party.
His insistence that released funds will be spent on US agricultural products can appeal to farmers – a key Republican constituency – ahead of November’s mid-term elections, particularly in the Midwest and South.
Some critics of the memorandum of understanding signed on Jun 17 fear Iran will instead use the money to rebuild its armed forces and continue to support militant groups such as Hizbollah.
Iran has insisted that US$12 billion of its frozen funds are set to be released as part of ongoing talks, in two equal installments, said a report by the Mehr news agency that cited Deputy Foreign Minister Kazem Gharibabadi.
The US is yet to confirm the amount that Iran will get.
Trump did say talks were “going well”, echoing broadly optimistic comments from the various parties involved.
Israel-Lebanon conflict an obstacle to deal
Plenty of other outstanding issues stand in the way of a firm deal, including Israel’s conflict with Iran-backed Hizbollah in Lebanon.
Israel’s ongoing military presence in the south of the country has been cited by Iran as a breach of the agreement, jeopardising the talks. Iranian officials have said the US is also responsible for Israel’s violations of the ceasefire.
A fifth round of US-mediated talks between Israel and Lebanon is taking place in Washington on Tuesday, said the Israeli embassy in the city.
Secretary of State Marco Rubio flew to the United Arab Emirates, as the US seeks to reassure regional allies the interim agreement it signed last week is good for their security and economies.
Rubio will also travel to Kuwait and Bahrain.
Exactly what “open” will mean for the strait remains unclear.
Iran said on Tuesday the Strait of Hormuz is “fully” open to commercial shipping and that large volumes of oil have transited the waterway in recent days, the semi-official Iranian Students’ News Agency revealed.
While traders warn it can take months for oil and liquefied natural gas flows to normalise, signs of abundant near-term supplies have pushed prices lower. BLOOMBERG
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
Share with us your feedback on BT's products and services
TRENDING NOW
Malaysian tycoon Vincent Tan’s sell-downs point to pruning rather than an exit plan
Simba ordered to pay S$700,000 in damages to indoor skydiving operator Altitude Xperience for trespass
What’s wrong with Orchard Road? Experts weigh in on the street’s cachet and its future
As luxury retail goes big, can Singapore’s Orchard Road keep up?
