Trump Puts Conditions on Iran Funds, Says Money Can Only Buy US Food and Medicine

US President Donald Trump has said that any Iranian funds released under sanctions relief will not be handed directly to Tehran but instead placed in a US-controlled escrow account, where the money can only be used for humanitarian purchases from the United States.

The statement comes as Washington and Tehran continue negotiations over Iran's nuclear programme and broader sanctions relief following a deal aimed at reducing tensions in the Middle East.

Trump Outlines Conditions for Accessing Funds

In a post on his Truth Social platform on Tuesday, Trump explained how any released Iranian assets would be managed and where the funds could be spent.

"The Money and/or Sanctions that the US Treasury is releasing goes into escrow, controlled by the USA, and will be used for the purchase of food and medical supplies, exclusively from the United States, including Corn, Wheat, and Soybeans from our great American Farmers," Trump posted on his Truth Social platform.

He described the move as a humanitarian measure and added:

"This is a humanitarian crisis, and I feel it is necessary to help, NOW, before it is too late."

At the same time, Iran indicated that a significant amount of frozen assets could soon become available. According to Mehr news agency, Deputy Foreign Minister Kazem Gharibabadi said that around $12 billion in frozen Iranian funds are expected to be released as negotiations progress.

US-Iran Talks Enter Crucial Phase

The latest developments come amid ongoing discussions between Washington and Tehran over the future of Iran's nuclear programme.

Both countries recently signed an agreement intended to help end the broader conflict that has destabilised parts of the Middle East. As part of the negotiations, Iran is seeking sanctions relief and access to funds that have remained frozen under international restrictions.

On Monday, the US Treasury Department announced a temporary easing of sanctions, allowing the production, sale and delivery of Iranian crude oil and related products until August 21 while diplomatic talks continue.

Iran hopes that the current negotiations could eventually lead to wider sanctions relief after decades of economic restrictions imposed by the United States, the United Nations, the European Union and other countries over concerns related to its nuclear activities, human rights record and regional influence.

Understanding UN Sanctions on Iran

International sanctions on Iran have largely centred on concerns regarding its nuclear programme and alleged violations of obligations under the Nuclear Non-Proliferation Treaty.

Between 2006 and 2010, the UN Security Council adopted several resolutions that imposed restrictions on Tehran. These measures included an arms embargo, limits on nuclear-related technology transfers and asset freezes targeting specific companies and individuals.

The sanctions also prohibited activities connected to the development of ballistic missiles capable of carrying nuclear weapons. While assets linked to the Islamic Revolutionary Guard Corps (IRGC) and Iran's state shipping company were frozen, Iranian oil exports were not completely banned under the UN framework.

Following the 2015 Joint Comprehensive Plan of Action (JCPOA), the UN outlined a process for lifting sanctions. However, after Trump withdrew the United States from the nuclear agreement in 2018 and Iran reduced compliance with some commitments, UN sanctions were reimposed through a "snapback" mechanism last year.

Why Removing US Sanctions Remains Complicated

The United States first imposed sanctions on Iran in 1979 after the seizure of the US Embassy in Tehran and the hostage crisis involving American diplomats.

Over the decades, Washington expanded those measures to include restrictions on oil and gas exports, penalties related to Iran's nuclear programme and sanctions tied to support for groups designated by the US as terrorist organisations.

A major challenge in any sanctions relief effort is the status of the IRGC, which Washington classifies as a terrorist organisation. The group's deep involvement in Iran's economy complicates efforts to remove restrictions.

While Trump has the authority to revoke sanctions imposed through executive orders, including asset freezes, trade bans and restrictions on countries buying Iranian oil, many sanctions were enacted by Congress and cannot be removed quickly.

Several congressional sanctions lack waiver provisions, meaning legislative action may be required to alter them. In addition, thousands of sanctions target specific companies, institutions and individuals, making the unwinding process lengthy and legally complex.

The European Union also maintains extensive sanctions on Iran, including restrictions on oil exports, financial transactions, energy cooperation and technology transfers. The bloc has additionally sanctioned the IRGC and recently introduced new measures linked to Iran's blockade of the Strait of Hormuz.