U.S. Treasury Secretary Scott Bessent said the Treasury will directly oversee the release of frozen Iranian funds when they are released [1, 2].
This oversight mechanism is a central component of President Donald Trump’s interim Iran agreement. By controlling the flow of assets, the U.S. government aims to prevent the Iranian government from accessing the money for non-humanitarian uses.
Speaking during a live interview on CNBC’s ‘Squawk Box’ this Wednesday, Bessent said the administration's approach to the frozen assets [1, 3]. He said the goal is to ensure the funds reach their intended targets without being diverted by the state [2, 4].
"We will directly oversee the release of those funds to ensure they are used for humanitarian purposes," Bessent said [1].
The Treasury's involvement serves as a safeguard within the broader diplomatic framework. American officials will maintain a level of control over the distribution process to verify that the financial resources are utilized for civilian needs, rather than government operations [2, 4].
"American officials will directly oversee the release of frozen Iranian funds," Bessent said [2].
This strategy marks a shift in how the U.S. manages frozen assets during diplomatic transitions. Rather than a wholesale release of funds upon the signing of an agreement, the Treasury will implement a monitored disbursement process [1, 3].
“We will directly oversee the release of those funds to ensure they are used for humanitarian purposes.”
The decision to maintain Treasury oversight over frozen assets indicates a low-trust diplomatic approach. By decoupling the release of funds from a simple agreement and instead tying them to verified humanitarian outcomes, the U.S. retains significant economic leverage over Iran even while pursuing an interim deal.
