Frozen funds will never touch Iran under Trump-backed MOU, US official tells The Post

The Trump administration is insisting that billions of dollars in frozen Iranian assets will never actually reach Tehran’s hands, pushing back on criticism that the White House is preparing to bankroll one of America’s most dangerous adversaries.“None of this money is ever going to touch Iran,” a senior US official told The Post.Instead, officials say the funds would function more like an escrow account, with payments sent directly to approved vendors supplying humanitarian goods rather than to the Iranian regime itself.“There’s no big handouts, there’s no big tranches of cash,” the person said.Under the arrangement tied to ongoing US-Iran negotiations, Tehran can request purchases of items such as food, medicine and other humanitarian supplies, but would never directly receive the money.That means payments will go directly to companies supplying agricultural products, medical equipment or other approved goods.The humanitarian spending would come from a Qatar-held $6 billion fund released by former President Joe Biden as part of a September 2023 prisoner swap that brought home five detained Iranian-Americans, in exchange for five Iranians held by the US, officials have previously told The Post.It comes after Iranian media this week suggested Tehran would be given $12 billion in two tranches.The US argues the arrangement gives Washington complete control over the pace and scope of any economic relief while ensuring Iran receives incentives to continue cooperating with nuclear inspections and other provisions being negotiated.The system ensures the money never enters Iranian government accounts and can be shut off immediately if talks collapse.“Every single piece of this process, we retain control,” the official said.“If at some point in the process the Iranians stop walking this path with us, payments stop.

We can freeze the whole thing.”The $6 billion originated from Iranian oil sales years ago to South Korea, which the Biden administratio...