US, Iran contradict each other on frozen assets as talks open in Islamabad

Ahram Online , Saturday 11 Apr 2026

A US official has denied reports that Washington agreed to release frozen Iranian assets, contradicting remarks by a senior Iranian source as delegations from both sides gather in Pakistan for talks aimed at ending the US-Israeli war on Iran.

Journalists work at a media facilitation center ahead of US–Iran peace talks in Islamabad on April 11, 2026. AFP

The Iranian source, who spoke to Reuters, said the United States had agreed to unfreeze funds held in Qatar and other foreign banks, describing the move as a sign of “seriousness” in negotiations taking place in Islamabad.

But a senior US official rejected the claim on Saturday, saying the talks had not yet begun. “False. The meetings have not even started yet,” the official said in a message from the White House.

Iranian and US delegations have arrived in Islamabad for negotiations to halt the war, although details on the timing and format of the talks remain unclear.

Earlier, Tehran said any lasting agreement would require the unfreezing of Iranian assets and an end to Israel’s war on Lebanon.

Pakistan’s Prime Minister Shehbaz Sharif met US Vice President JD Vance on Saturday, with his office saying peace efforts had begun, but offering few details.

“As the Islamabad Talks commenced today, the Prime Minister of Pakistan, Muhammad Shehbaz Sharif, held a meeting with His Excellency JD Vance, Vice President of the United States of America,” the statement read. “The Prime Minister reiterated that Pakistan looks forward to continuing its facilitation of both sides in making progress towards sustainable peace in the region.”

The US delegation also includes US special envoy to the Middle East Steve Witkoff and senior adviser Jared Kushner. Iranian media reported that Tehran’s delegation held separate talks with Sharif on the sidelines.

The status of the negotiations remains uncertain, with no official schedule released.

Iranian officials have also raised concerns over what they describe as unmet conditions in the talks.

Iranian media reported that parliamentary speaker Mohammad Bagher Qalibaf, who is leading Tehran’s delegation, protested to Pakistan’s military leadership over Washington’s failure to meet key demands, including a ceasefire in Lebanon and the release of frozen assets.

Separately, Iran’s Fars News Agency described ongoing restrictions on shipping through the Strait of Hormuz as a “strategic pressure tactic”.

At the centre of the dispute are billions of dollars in Iranian assets frozen under US sanctions.

The money, about $6 billion from oil sales to South Korea, was blocked in 2018 after President Donald Trump withdrew from the nuclear deal and reimposed sanctions during his first presidential term.

The funds were moved to accounts in Qatar in 2023 as part of a US-Iran prisoner swap, but remain tightly restricted. Washington says the money can only be used for humanitarian purchases such as food and medicine under US oversight.

Access was effectively frozen again with the outbreak of Israel's genocidal war on the Gaza Strip in October 2023, with US officials saying Tehran would not be able to draw on the funds.