The United States and Iran are in active negotiations over a three-page framework that would see Washington release $20 billion in frozen Iranian funds in exchange for Tehran surrendering its stockpiles of enriched uranium, Axios reported on Friday.
The proposed arrangement marks a significant development in back-channel diplomacy that has intensified in recent weeks, with Pakistani, Egyptian, and Turkish mediators working to bridge critical gaps before a ceasefire expires on April 21.
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According to Axios, the United States proposed that Iran accept a 20-year moratorium on uranium enrichment during negotiations in Islamabad, with the Iranians countering with a shorter "single digit" period.
The enrichment question has been the central sticking point in negotiations. The U.S. also asked Iran to remove "all highly enriched uranium" from the country, while the Iranians said they would agree to a "monitored process of down-blending" instead.
The $20 billion in question is part of a much larger pool of Iranian assets frozen abroad. The exact amount each country holds is unclear, but Iranian media have previously reported that China holds at least $20 billion, India holds $7 billion, Iraq holds around $6 billion, and Japan holds approximately $1.5 billion.
Meanwhile, Iran's desperation for economic relief has sharpened its focus on asset recovery. Before the war broke out, Iran was already in a full-blown economic emergency, with year-on-year inflation reaching 68.1% in February - the highest since World War II.
Moreover, U.S. Treasury Secretary Scott Bessent acknowledged the pressure, saying, "We created a dollar shortage in the country... with a grand culmination in December when one of the largest banks in Iran went under, there was a run on the bank, the central bank had to print money, the Iranian currency went into free fall."
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Meanwhile, Diplomatic momentum appeared to stumble last weekend when, while the Iranians thought they were close to an initial agreement by Sunday morning, they were caught off guard by Vice President Vance's press conference. "The Iranians were pissed off about that press conference," a source with knowledge told Axios.
Despite the setback, Axios reported that "the talks are not dead," with mediators still working to narrow differences ahead of the looming deadline.
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