President Donald Trump announced Thursday that the United States will use unfrozen Iranian assets to purchase wheat, soybeans, and corn from American farmers [1].
The move represents a significant shift in the application of U.S. sanctions, potentially redirecting foreign sovereign funds to provide direct financial support to the domestic agricultural sector.
Speaking during a Rose Garden Club Dinner with American farmers in Washington, D.C., on June 25, 2026 [1], the president detailed the plan to utilize funds that had been frozen under U.S. sanctions. Trump said the initiative is designed to provide relief to U.S. growers by leveraging these assets.
"We will take the money and spend it on American farmers," Trump said [2]. He said the U.S. "will take their money and spend it" [3].
While the administration has not specified the exact monetary amount of the assets to be unfrozen [4], the plan focuses on the acquisition of three primary crops: wheat, soybeans, and corn [1].
Iranian officials have rejected the proposal. Mohammad Ali Hosseini, the speaker of the Iranian Parliament, said the claim is false and that Iran will not allow the move [5]. Other Iranian leaders said the assertion that Tehran must buy U.S. farm products with these assets is nonsense [6].
Despite the opposition from Tehran, the president said the assets would be used to assist the U.S. farming community [1].
“"We will take the money and spend it on American farmers."”
This development highlights a tension between U.S. domestic economic goals and international sanctions law. By repurposing frozen sovereign assets for domestic agricultural subsidies, the administration is testing the legal boundaries of sanctions. The immediate rejection by Iranian leadership suggests that this move may further strain diplomatic relations and complicate any future negotiations regarding the release of frozen funds.
