Evian, France: US President Donald Trump has defended the potential return of frozen Iranian assets as part of the ongoing diplomatic engagement between Washington and Tehran, arguing that permanently withholding another country’s funds could damage global confidence in the US dollar and the international financial system.
Speaking to reporters on the sidelines of the G7 Summit in France, Trump acknowledged that the United States had frozen substantial Iranian assets over the years but stressed that those funds ultimately belong to Iran.
“The unfreezing… we have taken a lot of their money. And we have their money. We have taken their money, it’s not our money, it’s their money. And we froze it. At a certain point in time, I guess we’re going to have to give it back. You know, if we didn’t give it back, nobody would ever invest in the dollar again,” Trump said.
The President noted that while retaining the funds might appear politically appealing, such a move could undermine trust in the US financial system and discourage foreign nations from holding assets in dollars.
“I thought about it. I’m not the most perfect person. I said, ‘What if we keep their money? What the hell are we giving it back to them?’ But people from lots of nations, some nations we don’t agree with, they have their money, the dollar’s become very strong under me, and they don’t want to have a little conflict with somebody and end up having the United States just take their money,” Trump stated.
“So if you do that, you really don’t have a system,” he added.
The remarks come amid significant diplomatic developments between the United States and Iran. According to CNN, Trump and Iranian President Masoud Pezeshkian have virtually signed a 14-point Memorandum of Understanding (MoU) aimed at ending hostilities between the two countries, reopening the Strait of Hormuz, and initiating a 60-day process to negotiate a broader agreement on sanctions relief and Iran’s nuclear programme.
Under the reported framework, the United States would make available for use the frozen or restricted funds and assets of the Islamic Republic once the MoU is implemented. Both sides are expected to negotiate and agree on the procedures governing the release of these assets during the upcoming talks.
The proposed agreement is being viewed as a major step toward reducing tensions between the two longtime adversaries and could pave the way for a broader diplomatic settlement in the months ahead.