US Treasury to Oversee Frozen Iranian Funds for US Food and Medicine Purchases

Scott Bessent, the US Treasury Secretary, stated that the United States will oversee the distribution of frozen Iranian funds as part of ongoing agreements between the two countries.

In remarks made to CNBC on Wednesday, Bessent confirmed that a very large portion of the Iranian funds will be designated for purchasing American food and medicine.

Bessent said, "We brought the Iranians to the negotiating table thanks to economic pressure and the naval blockade."

Previously, US President Donald Trump indicated that the frozen Iranian funds to be released under the agreement with Tehran would be used "exclusively" to buy food from American farmers, adding that "Iran is supposed to use the frozen funds to buy food for its people."

Trump also affirmed that the United States will monitor the mechanism of how these funds are utilized.

On the Iranian side, Central Bank Governor Abdolnaser Hemmati announced that the released remaining funds will not necessarily be limited to financing basic commodity purchases, according to Reuters.

Hemmati explained that the agreements grant Iran the right to use these balances to import a wider range of goods and merchandise, provided they are not included on the list of international sanctions imposed on the country.