US, Iran push toward interim deal as frozen funds remain key sticking point

The United States and Iran are intensifying efforts to reach an interim agreement to end their conflict, Reuters reported Thursday, even as the two countries entered a second day of military exchanges and tensions in the Strait of Hormuz reached a peak.

Citing Iranian sources and European officials, Reuters said the two sides are exchanging views on the details of a potential deal. An Iranian source said political-level consensus has already been reached, but that further discussions are needed on specifics — including procedures for releasing tens of billions of dollars in frozen Iranian oil revenues held abroad.

One Iranian source said Iran wants between $6 billion and $12 billion of the frozen funds made directly available to Tehran. The United States, by contrast, wants to release funds only in stages and solely for the purchase of humanitarian goods, and opposes returning the money directly to Iran, the source said.

The sources added that the Iranian government's goal goes beyond securing a comprehensive peace deal. It is seeking a framework that would unlock enough frozen funds to give the regime a minimum lifeline to survive.

"What matters most for the regime's survival is not a sweeping agreement, but securing just enough breathing room to keep the system intact — through the release of frozen assets and an end to the war," they said.