Islamabad [Pakistan], April 11 (ANI): The White House on Saturday dismissed a report suggesting that the United States had consented to the 'release of Iranian capital' previously 'blocked in Qatari and various international financial institutions.'

This official denial arrives as American and Iranian representatives convene in Islamabad for high-stakes negotiations aimed at brokering a ceasefire, reported CBS.

The controversy follows a report, which quoted a high-ranking Iranian official claiming that Washington had signalled its approval to unfreeze the assets. According to the news agency, the source had 'welcoming the move' as a 'tangible demonstration' of 'seriousness' from the United States in its 'pursuit of a formal agreement.'

The report further cited an anonymous source who stated that the decision to release the funds was 'directly linked to ensuring safe passage through Strait of Hormuz.'

Providing historical context to the dispute, the USD 6 billion in question was first blocked in 2018 and was originally slated for unfreezing in 2023 under the terms of a US-Iranian prisoner exchange. However, the administration of President Joe Biden moved to refreeze the capital in the aftermath of the October 7, 2023, strikes on Israel carried out by the Palestinian militant group Hamas, an ally of Tehran.

At that juncture, US authorities asserted that Iran would be denied access to the finances 'for the foreseeable future,' emphasising that Washington maintained the authority to 'completely freeze the account' if deemed necessary. These assets originated from Iranian petroleum exports to South Korea but were stalled in South Korean financial institutions after President Donald Trump withdrew from the nuclear pact and reinstated sanctions during his initial term.

The funds were eventually relocated to bank accounts in Qatar following a Doha-mediated prisoner swap in September 2023. That agreement facilitated the liberation of five US nationals imprisoned in Iran in return for the transfer of the money and the release of five Iranians detained in the US.

During that period, US officials clarified that the expenditure was 'restricted to humanitarian use only.' The established framework required the capital to be distributed solely to verified suppliers for the procurement of 'food, medicine, medical equipment and agricultural goods' destined for Iran, all conducted under stringent 'US Treasury oversight.' (ANI)