WASHINGTON (AP) — President Donald Trump and Vice President JD Vance have announced an interim deal aimed at ending the war with Iran, which they claim will provide a financial boost to American farmers. Iran, however, disputes this assertion.
Experts on sanctions are puzzled as to how billions of Iranian assets, long held in escrow due to U.S. sanctions, could benefit U.S. farmers. The provisional agreement, reached last week, proposes reopening the Strait of Hormuz—a key global oil and gas route—and permits Iran to freely sell oil for a 60-day negotiation period. This memorandum of understanding also promises to unfreeze Iranian assets.
Critics have attacked Trump’s deal for not addressing the primary reasons he initiated war with Iran on February 28. Concerns include Iran’s nuclear ambitions, missile program, and support for groups such as Hezbollah and Hamas. Responding to critics on his Truth Social media platform, Trump claimed the U.S. Treasury would release Iranian assets for the purchase of food and medical supplies from the U.S., benefiting American farmers with crops like corn, wheat, and soybeans.
Vance has reiterated that frozen funds outside Iran will be allocated to buying U.S. crops, but Iran denies this is part of the deal. Spokesperson Esmail Baghaei from Iran’s Foreign Ministry emphasized that agricultural purchases would be based on prices and quality, not dictated by Washington.
Iran’s ambassador in Geneva, Ali Bahreini, rejected the notion that the U.S. and Qatar would control the use of unfrozen funds, asserting Iran’s autonomy in deciding asset use.
A U.S. official dismissed these contradictions, suggesting Iranian officials were addressing their domestic audience. The anonymity condition applied as they were not authorized for official comment.
Joseph Glauber, a research fellow emeritus, noted Iran’s unlikely shift away from existing food trade partners like Brazil, India, Turkey, the EU, Canada, and Argentina. He highlighted potential tensions arising from Trump’s demand for Iran to buy from U.S. farmers, potentially straining relations with competitors.
Previously, U.S. sanctions demanded foreign spending on Iranian imports—such as South Korea’s oil purchases and Iraq’s Iranian electricity imports—be placed in escrow and only released with Treasury approval for non-sanctionable items like food and medicine.
The U.S. Treasury approved sale of Iranian oil and related products through August 21, though not mentioning escrow accounts.
Richard Goldberg of the Foundation for Defense of Democracies, welcomed clarity on Iran’s restriction to U.S. agricultural purchases.
Richard Nephew, a senior researcher, expressed uncertainty about the agreement’s implications on releasing Iranian assets. While the U.S. could insist on purchasing American farm goods using these assets, banks may not comply, risking U.S. sanctions. He remarked this approach is rare due to perceptions of treating national security as monetary gain.
Associated Press writers Josh Boak and Michelle L. Price contributed from Washington.