Home » Iran Warns US Against Escalation, Says Wider Conflict Could Follow

Iran Warns US Against Escalation, Says Wider Conflict Could Follow

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Iran frozen assets deal negotiations

Iran Frozen Assets Deal: Tehran Demands $24bn Release

The Iran frozen assets deal has emerged as a major obstacle to a potential peace agreement between Iran and the United States, with Tehran demanding the release of $24 billion in frozen funds before negotiations can move forward.

A senior Iranian official has said that any potential peace agreement between Iran and the United States depends on the release of $24 billion in frozen Iranian assets, highlighting a major sticking point in ongoing talks between the two countries.

Mohsen Rezaei, a military adviser to Iran’s Supreme Leader, told CNN that negotiations have reached a deadlock and that US President Donald Trump must take action to move the process forward. According to Rezaei, Iran wants the release of $12 billion immediately after an interim agreement is signed, with another $12 billion to follow at a later stage.

The demand has raised concerns in Washington, where officials reportedly fear that releasing the funds could weaken a key source of leverage over Tehran. Trump has also insisted that any future agreement must be stronger than the 2015 nuclear deal and avoid any perception of handing large sums of money to Iran.

Discussing the Iran frozen assets deal, Rezaei described the release of the funds as a test of trust between both countries. He argued that the money belongs to Iran and said the move could create a new chapter in relations between Tehran and Washington.

Rezaei also warned against any return to military conflict. He said that if the United States resumes hostilities, Iran could expand military operations beyond the Persian Gulf to areas including the Indian Ocean, the Red Sea, the Bab al-Mandab Strait and the Mediterranean Sea.

According to him, Iran would target additional American bases if war breaks out again, although he added that the chances of renewed conflict remain low.

The Iranian official also rejected the possibility of a meeting between Trump and Supreme Leader Ayatollah Mojtaba Khamenei, stating that negotiations remain stalled and are still in an early stage.

Rezaei further reiterated Iran’s claim that it shares sovereignty over the Strait of Hormuz with Oman and suggested that vessels using the strategic waterway could face maintenance charges in the future. The strait remains one of the world’s most important energy routes, carrying a significant share of global oil and liquefied natural gas shipments.

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A veteran figure within Iran’s political and military establishment, Rezaei previously led the Islamic Revolutionary Guard Corps and has held several senior government positions. He also questioned whether any future agreement with Trump would be sustainable, citing the US withdrawal from the 2015 nuclear agreement.

Despite ongoing negotiations, Rezaei said Iran is prepared for any future confrontation and claimed the country possesses military capabilities that extend beyond its missile programme.

His comments underscore the fragile state of relations between Tehran and Washington as both sides continue searching for a path toward a possible agreement while tensions remain high across the Middle East.


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