US denies agreeing to unfreeze Iran assets after conflicting reports

The United States has agreed to release Iran’s frozen assets held in Qatar and other foreign banks, a senior Iranian source told Reuters.

The source said the move was “a test of goodwill” and a sign of seriousness about a durable peace deal.

It added that the asset unfreeze was “directly linked to ensuring safe passage” through the Strait of Hormuz ahead of any agreement.

Iranian officials said on Saturday that the country’s armed forces remained ready to act amid talks with the United States, stressing deep distrust of Washington.

MP Rouhollah Motefakker Azad said Iran did not trust the United States and was ready to impose "the nation’s will on the battlefield".

Fadahossein Maleki, a member of parliament’s national security and foreign policy committee, also said the armed forces had their “hand on the trigger” in case of any “strategic mistake” in the negotiations.

Earlier, Mehdi Tabatabaei, deputy for communications to President Masoud Pezeshkian, wrote on X that the armed forces were ready as the talks began.

Iran’s first vice president said a deal with the United States is possible if negotiations are led by what he described as an “America First” approach, but warned there would be no agreement otherwise.

“If we negotiate … an agreement beneficial to both sides and the world is probable,” Mohammad Reza Aref said in a post on X.

“However, if we face representatives of ‘Israel First,’ there will be no deal … we will inevitably continue our defense even more vigorously,” he added.

Iran’s new supreme leader Mojtaba Khamenei is engaged in decision-making on major issues including the war despite serious injuries, three people close to his inner circle told Reuters.

They said Khamenei was taking part in meetings with senior officials via audio conferencing and remained “mentally sharp” as he recovers.

He suffered severe facial and leg injuries in an airstrike that killed his father earlier in the conflict, with one source saying his face was disfigured.

Khamenei’s condition and whereabouts have not been publicly confirmed since the attack.

Talks between Iran and the United States in Islamabad depend on earlier meetings with Pakistan’s prime minister and could take place later on Saturday, Iran’s IRGC-affiliated Tasnim news agency reported.

The report said the Iranian delegation would meet the prime minister at 1 p.m. local time and that whether negotiations go ahead would depend on those discussions.

It added the talks were planned as a one-day meeting and that reports suggesting they would last several days were not accurate.