- Trump posted on Truth Social that Iran’s released funds will go into US-controlled escrow to be used exclusively for purchasing food and medical supplies from America — Iran’s Foreign Ministry flatly rejected this, saying the $12 billion will be used “freely, in whatever manner it deems appropriate.”
- Trump claimed Iran “fully and completely agreed to highest level Nuclear inspections long into the future” — Iran’s spokesperson responded there are no plans for UN nuclear watchdog inspections at damaged facilities.
- Talks are continuing at the technical level in Switzerland after Vance and Iran’s Parliament Speaker departed Monday; Secretary of State Rubio heads to the UAE, Kuwait, and Bahrain to reassure Gulf allies.
- Oil slipped slightly with Brent near $78/barrel, well below the $125 peak in late April but still above pre-war levels as Hormuz traffic recovers slowly.
What Happened?
President Trump posted on Truth Social that Iran’s frozen funds — being released as part of the ongoing peace framework — will be held in US-controlled escrow and used exclusively to purchase food and medical supplies from the United States. Earlier Tuesday, Iran’s Foreign Ministry spokesman Esmail Baghaei disputed the claim, saying the funds would be used “freely, in whatever manner it deems appropriate.” Iran’s state media cited Deputy Foreign Minister Kazem Gharibabadi saying $12 billion in frozen funds are set for release in two equal installments. The US has not confirmed the amount. Trump also said Iran agreed to “highest level Nuclear inspections long into the future,” a claim Iran’s spokesman said is false — there are no plans for IAEA inspections at nuclear sites damaged by US and Israeli strikes.
Why It Matters?
The public contradiction between Washington and Tehran on two of the most critical points — money and nuclear inspections — underscores how fragile and unfinished the deal remains. Both governments are managing domestic audiences pulling in opposite directions: Trump faces Republican hawks who fear the money rebuilds Iran’s military and supports Hezbollah; Iran’s leadership must avoid appearing to capitulate on sovereignty. The Iran-backed Hezbollah situation in Lebanon remains unresolved, with US envoy Vance declining to answer whether the US wants Israeli troops to withdraw. Israel’s UN ambassador said the Lebanese military cannot confront Hezbollah on its own.
What’s Next?
Lower-level delegations remain in Switzerland working through technical groups on sanctions unwinding and uranium enrichment curbs. Rubio will visit UAE, Kuwait, and Bahrain to address Gulf allies’ security concerns. Oman and Iran will begin separate talks on the future administration of the Strait of Hormuz, including service fees. Hormuz traffic is increasing but still far below prewar rates, and Iran’s Ambassador in Geneva said the strait is “fully open.” Brent crude sits near $78 — down sharply from the $125 wartime peak but above pre-conflict levels, reflecting that a full supply normalization will take months.
Source: Bloomberg
