Iran deal claims: Trump and Vance say unfreezing assets could benefit US farmers

US President Donald Trump and Vice President JD Vance said an interim US-Iran deal would send large gains to American farmers. Iran rejected that claim. Sanctions specialists also said the process was unclear. Iranian assets have stayed locked in escrow for years. They questioned how those funds would reach US farm sellers.

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The tentative agreement reached last week would reopen the Strait of Hormuz. A fifth of the worlds oil and natural gas once passed through it. The plan would let Iran sell oil again during a 60-day period. The countries would keep negotiating key issues. The memorandum of understanding also promised to unfreeze Iranian assets.

US-Iran deal and Iranian assets in escrow

Trump faced criticism for not covering stated war aims. Those included limiting nuclear ambitions, missiles, and backing of militants. Trump cited Hezbollah in Lebanon and Hamas in Gaza. Trump went to war with Iran on February 28. Critics said the interim text did not address those drivers.

Trump responded on Tuesday using Truth Social. Trump wrote: "The US Treasury Department, he wrote, would release the Iranian assets 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. These are things that are desperately needed by Iran.\"

Vance echoed that idea after high-level talks in Switzerland. Vance and Trump said frozen funds held outside Iran would buy US crops. Iran denied such a condition. Iranian officials said purchasing choices would stay with Iran. They said Washington could not set terms on suppliers.

Iran response to US-Iran deal claims on farm purchases

A spokesperson for the Iranian Foreign Ministry, Esmail Baghaei, said farm imports would hinge on pricing and quality. Baghaei rejected any requirement set by Washington. Baghaei said: \"It is interesting that the philosophy and goal of the war, which was the destruction of the Iranian civilisation and the collapse of Iran, has become enriching American farmers,\"

Irans ambassador in Geneva, Ali Bahreini, also disputed limits raised by Vance. Bahreini rejected the idea that the US and Qatar would control spending. Bahreini told reporters: \"Iran is the only country who decides what to do with those assets,\" The comments underlined Iran’s view on control of unfrozen money.

Sanctions rules and how Iranian assets could move under the US-Iran deal

Under earlier sanctions, the US often required escrow controls on Iran-linked trade. Funds from purchases, such as South Korean oil, were locked. The same applied to Iraqi payments for Iranian electricity. Release usually needed Treasury approval. Money also had to go to non-sanctionable items like food and medicine.

On Monday, the US Treasury approved sales of Iranian oil, petrochemicals and petroleum products through August 21. The approval did not refer to escrow accounts. That omission added to questions around how any unfreezing would work. Analysts said more terms were needed to explain the mechanism.

Richard Nephew, senior research scholar at Columbia Universitys Centre on Global Energy Policy, said the meaning remains uncertain. Nephew said: \"Could the US require that the assets be used to buy American farm products? Well, we can try!\" Nephew added that banks may refuse. Nephew said the US could sanction them, but called it rare.

Joseph Glauber, a research fellow emeritus at the International Food Policy Research Institute, said Iran had many food partners. Suppliers include Brazil, India, Turkey, the European Union, Canada, Australia and Argentina. Glauber said a US-only demand could upset competitors. Richard Goldberg of the Foundation for Defense of Democracies also said on X that clarity would help.

For now, Trump and Vance said the interim terms could steer Iranian assets into purchases from US farmers. Iranian officials rejected that reading and said Iran would decide how money gets used. Treasury’s approval for oil sales runs through August 21, yet key details on escrow controls stayed missing. Experts said clearer text is needed to settle the dispute.

With inputs from PTI