Bessent: "U.S. Treasury to Manage Iran's Unfrozen Funds"

"Use of Funds for U.S. Food and Pharmaceuticals" Reiterated
"Iran to Join Dollar System... Venezuela and Russia May Follow"

Scott Bessent, U.S. Secretary of the Treasury, announced that the Treasury Department plans to manage Iranian funds that are set to be unfrozen under the ceasefire negotiations with Iran, stating, "A significant portion of these funds will be used to purchase U.S.-made food and pharmaceuticals."

Appearing on CNBC's "Squawk Box" on the 24th (local time), Secretary Bessent said, "We will recirculate that money into U.S. products," elaborating on the department's intentions.

Scott Bessent, U.S. Secretary of the Treasury. Photo by Reuters Yonhap News

This statement reiterated remarks made by U.S. President Donald Trump on the 22nd and again on the morning of the 24th. However, the Iranian side has dismissed these claims, asserting that agricultural product purchases will be based on price and quality, not the conditions set by the United States.

Secretary Bessent explained that the unfrozen funds would be subject to oversight by the U.S. Treasury in the Middle East, with the initial funds likely to be released in Qatar and Treasury officials supervising the process. He added that this approach would help ensure the funds are used to purchase U.S.-made goods.

This appears to be a strategy to establish a kind of safeguard, as there has been criticism even within the ruling Republican Party that the ceasefire memorandum of understanding (MOU) with Iran is too favorable to Tehran. By requiring Iran to use the unfrozen funds to purchase U.S. goods, the money can effectively flow back into the United States.

However, CNBC pointed out that it remains unclear whether the U.S. Treasury will have direct control over the funds once they are unfrozen, or if the United States is merely outlining conditions for execution through overseas banks, escrow accounts, or sanctions pressure. Additionally, CNBC noted that Secretary Bessent did not provide specific details, such as how much of Iran's frozen funds would be released, which institution in Qatar would manage the accounts, where the funds would be held, what role Iran would play in the purchasing process, or what measures the Treasury would implement to prevent the misuse of funds.

Furthermore, Secretary Bessent stated, "I believe that as part of the negotiations with Iran, Iranian entities will issue invoices in dollars," indicating that the agreement could include Iran joining the dollar system and settling oil sales in dollars. He emphasized, "Dollar dominance is essential. Everything we do is focused on strengthening the dollar."

Secretary Bessent also addressed other countries, saying, "Venezuela will issue invoices in dollars and return to the dollar system," adding, "(Venezuela) previously sold oil to China at discounted prices and did not receive dollars. Now, the dollar will become central to their trade." He further mentioned that Russia could also return to the dollar system once the Russia-Ukraine war ends.

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