U.S. Proposes Using Unfrozen Iranian Assets for American Farm Goods

The United States announced a plan to release $12 billion in frozen Iranian assets for the purchase of American agricultural goods as part of ongoing negotiations to end the Middle East war. President Donald Trump stated the funds would be used exclusively for U.S. corn, soybeans, wheat and medical supplies.

Vice President JD Vance said the arrangement would benefit American farmers and feed Iranian people. Iranian officials rejected the spending restrictions. Foreign Ministry spokesman Esmaeil Baghaei said the assets would be released with absolute liberty for Iran to buy whatever goods it needs.

Trump posted on Truth Social that the money can only purchase food and medical supplies from the United States. Iran’s ambassador in Geneva, Ali Bahreini, said Iran alone decides how the assets are used. Iranian negotiator Mohammed Bagher Ghalibaf had earlier said an agreement had been reached to release the funds.

U.S.-Iran trade totaled $838 million in 2024, up 3 percent from 2023. Nearly all of the goods portion flowed from the United States to Iran and consisted mainly of medicines, medical equipment and agricultural products. Economists at the Peterson Institute for International Economics said any conditions on the funds would require lengthy negotiations.

They noted that broad sanctions still limit most commercial activity between the two countries.