TEHRAN — Diplomatic efforts to secure a permanent peace treaty between the United States and Iran have hit a severe roadblock. Tehran has tied the future of the negotiations to the immediate release of $24 billion in frozen assets, warning that Washington risks entering a “dark corridor” of regional warfare if hostilities resume.
The high-stakes ultimatum was delivered by Mohsen Rezaei, a powerful military adviser to Supreme Leader Ayatollah Mojtaba Khamenei and former commander of the Islamic Revolutionary Guard Corps (IRGC). Speaking from the Iranian capital, Rezaei made it clear that the future of regional stability now rests entirely on American concessions.
”The negotiations are at a deadlock and Donald Trump must break this deadlock,” Rezaei stated. “The ball is in Trump’s court.”
Under the proposed Iranian framework, Tehran demands an initial repatriation of $12 billion in frozen funds immediately upon the signing of an interim agreement, followed by the remaining $12 billion at a later, unspecified stage.
The ‘Pallets of Cash’ Dilemma
The multi-billion-dollar demand presents a profound political and strategic challenge for the White House. US officials are deeply concerned that releasing the funds at this juncture would prematurely surrender maximum economic leverage over the Iranian regime.
Furthermore, President Trump faces severe domestic constraints. He has consistently vowed that any diplomatic breakthrough with Tehran must be far more restrictive than the 2015 Joint Comprehensive Plan of Action (JCPOA). Crucially, Trump is determined to avoid any arrangement that mirrors former President Barack Obama’s 2016 financial transfers to Iran, which Trump repeatedly criticized on the campaign trail as handing over “pallets of cash.”
Rezaei dismissed these concerns, framing the financial demand as a fundamental “test of trust” that the US must pass before wider security guarantees can be discussed. “This is our own money, not America’s money,” he insisted.
Threats of a Multi-Sea Escalation
The current diplomatic impasse follows a devastating 40-day conflict between a US-led coalition and Iran that erupted in late February. During that brief but intense war, Iranian forces retaliated by targeting infrastructure across 12 nations in the region.
While Rezaei noted that the immediate probability of renewed fighting remains low, he issued a sweeping warning regarding Iran’s strategic posture should the ceasefire collapse. If attacked, Tehran plans to project power far beyond the Persian Gulf, transforming any localized conflict into a multi-theater war.
According to the military adviser, Iran is prepared to expand its offensive operations across critical global maritime chokepoints, including:
- The Strait of Hormuz
- The Bab al-Mandab Strait
- The Red Sea
- The Indian Ocean
- The Mediterranean Sea
”We will give another dimension to the war by attacking these other American bases that we have been attacking so far,” Rezaei warned. He added that if the United States attempted a ground invasion of the Iranian mainland, “the world will understand Iran’s true capabilities, because our land power is many times greater than our missiles.”
Red Lines and Waterway Tolls
Rezaei also shut down recent public overtures from President Trump, who remarked earlier in the week that he and Ayatollah Khamenei “seem to be getting along well” and that he would be “honored” to meet the Iranian leader.
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”This will not happen,” Rezaei said flatly, ruling out a historic summit. “Right now we are in the first stage of negotiations and Mr. Trump has brought the negotiations to a standstill.”
Beyond the funding dispute, Iran is also seeking to rewrite the economic rules of the region’s waterways. Rezaei reiterated Tehran’s claim of shared sovereignty over the Strait of Hormuz alongside Oman. He announced that Iran intends to implement a mandatory “maintenance fee” on commercial shipping traversing the strategic corridor—which handled 20% of global oil and liquefied natural gas prior to the war—arguing that Tehran should no longer solely shoulder the financial burden of policing the strait.
