Trump: "Iran's Frozen Assets Must Be Used to Buy U.S. Agricultural Products"... Iran Responds, "No Such Obligation"

Farmers Hit by Iran War and Tariffs
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Iran Shows No Intention to Buy U.S. Agricultural Products

Tensions are intensifying over how Iran’s overseas frozen assets will be used in the process of peace negotiations between the United States and Iran. U.S. President Donald Trump stated that the unfrozen Iranian funds would be used to purchase American food products, but the Iranian side countered that there is no obligation under the existing agreement to buy U.S. agricultural goods.

On the 22nd (local time), after signing an executive order at the White House, President Trump said, “One of the measures we are pursuing is using the unfrozen funds for food purchases,” adding that the food would be purchased from American farmers. He explained that items needed by Iran, such as corn and soybeans, would be sourced from U.S. farms.

U.S. Vice President J.D. Vance also outlined a similar plan at a press conference after follow-up talks with Iran in Switzerland. Vice President Vance said that if Iranian funds are unfrozen, the money would be used to increase the income of American farmers and to supply food to the Iranian people. He added that both the United States and Qatar would have the authority to approve these transactions.

The Trump administration’s push for these measures appears aimed at preventing concerns that the unfreezing of assets could lead to increased support for Iran’s regional armed groups. Foreign media reported that the United States prefers a phased release of the funds for humanitarian purposes, such as food purchases, rather than handing over cash directly to Iran.

At the same time, political calculations are also involved. According to the Washington Post, farmers have been hit hard by the Iran war and tariffs, and with the midterm elections coming up in November, support from Trump’s key rural base has been shaken. Therefore, if the purchase of U.S. agricultural products is made a condition, it could provide tangible export results for the farming community, which is a core part of President Trump’s support base.

Iran Draws a Line: "No Obligation to Purchase U.S. Agricultural Products"

However, it remains uncertain whether Iran will accept these terms. According to Al Jazeera, the governor of Iran’s central bank stated that Tehran is under no obligation to purchase American agricultural products under the existing agreement.

Bloomberg also reported that Iran has not yet shown any signs of preparing to purchase U.S. soybeans, wheat, or corn. In addition, it was revealed that the memorandum of understanding (MOU) signed between the United States and Iran last week includes a clause allowing Iran’s central bank to designate the beneficiaries of the unfrozen funds.

The Iranian side views the unfreezing of assets not as an economic favor from the United States, but as part of implementing the MOU. According to Iranian media outlet Nour News, Iranian Foreign Minister Abbas Araghchi stated that, with mediation from Qatar and Pakistan, progress had been made toward ending the war in Lebanon, with the lifting of oil and petrochemical export sanctions, the removal of maritime blockades, and the unfreezing of some assets.

The role of Qatar is also drawing attention. Qatar, along with Pakistan, has been mediating the peace talks between the United States and Iran. In addition, Qatar holds about USD 6 billion (approximately KRW 9.2 trillion) in Iranian oil funds that were originally frozen in South Korea but were transferred to a Doha account following a prisoner exchange agreement between the United States and Iran in 2023.

These funds were previously frozen in South Korean banks and were transferred to Qatar under the prisoner exchange agreement during the previous Joe Biden administration. Even at that time, the use of the funds was limited to humanitarian purposes. The fact that the U.S. designated Qatar as an approving party in this round of negotiations is closely related to this background.

Meanwhile, the Wall Street Journal (WSJ) estimated that Iran’s overseas frozen assets are substantial and spread across multiple countries. The WSJ estimated that Iranian frozen assets in China amount to between USD 20 billion and USD 50 billion, with USD 15 billion in Iraq, USD 7 billion in India, USD 3 billion in Japan, and about USD 2 billion each frozen in the United States and Luxembourg.

This content was produced with the assistance of AI translation services.