Iran demands $24bn asset release as talks stall and warns of ‘dark tunnel’

Talks between Washington and Tehran over a potential peace agreement have hit an impasse, with Iran’s leadership conditioning any deal on the immediate release of $24 billion in frozen assets, a senior Iranian official told CNN on Friday. Mohsen Rezaei, military adviser to Supreme Leader Mojtaba Khamenei, said the negotiations were “at a deadlock” and that “the ball is in Trump’s court” — a blunt demand that underscores Tehran’s insistence on tangible economic concessions before any lasting accord.

Speaking from the Iranian capital, Rezaei outlined a two-stage process: $12 billion would be unfrozen once an interim agreement is signed, with the remainder following later. US officials, however, view the proposal with deep scepticism, fearing that relinquishing control over the funds would eliminate one of their principal sources of leverage. “This is our own money, not America’s money,” Rezaei countered, framing the release as a test of American sincerity.

The dispute is freighted with wider regional implications. Rezaei warned that any resumption of hostilities would plunge the United States into a “dark tunnel” and potentially expand the conflict beyond the Persian Gulf. Yet in a separate remark, he also appeared to downplay the immediate risk, saying the chances of renewed war had “receded and become weak” — a rhetorical duality that reflects Tehran’s desire to keep diplomatic channels open while preserving its deterrent posture. Viewed from Washington, the impasse reinforces the administration’s calculation that Iran’s financial desperation is itself a pressure point.

European and Middle Eastern analysts note that the deadlock is compounded by the apparent impossibility of a direct leaders’ summit. Reports from Tehran indicate that a meeting between Donald Trump and Mojtaba Khamenei has been ruled out, eroding hopes for a breakthrough at the highest level. As both sides dig in, the narrow path to de-escalation rests on confidence-building measures — yet the very mechanism Tehran proposes is one Washington deems too risky. Whether the Trump administration is willing to unblock the funds in exchange for a halt to hostilities remains the central, unresolved question.