Qatar rejects Iran’s demand for unrestricted release of $12 billion in funds
Parliament Mohammad Bagher Ghalibaf (right) and Foreign Minister Abbas Araghchi (left) depart for Doha on Tuesday, 5/25/2026
The recent high-stakes visit of a senior Iranian delegation to Doha, led by Parliament Speaker Mohammad Bagher Ghalibaf, has ended in a major diplomatic setback for Tehran, an informed source with knowledge of the negotiations told Iran International.
Despite Tehran’s firm demands for the immediate and unconditional release of $12 billion in cash upon the signing of an initial Memorandum of Understanding (MoU) with the United States, Qatari officials rejected the request, agreeing to release only half of the amount under strict limitations, the source said.
According to a source close to a Qatari official involved in the discussions, Doha refused to transfer the funds directly or in cash to Iran. Instead, the money will only be made available as credit for Tehran to purchase essential goods and products directly from Qatar.
The restriction comes amid strong US opposition to granting Iran direct, unrestricted access to liquid financial assets.
Washington raised concerns that direct cash injections would provide the Iranian government with vital economic breathing room, allowing it to pay delayed public salaries and procure military equipment or other goods from foreign countries during a time of intense regional strain.
Iran International previously reported that Tehran had set the unrestricted release of the $12 billion held in Qatar as a strict, non-negotiable precondition before it would advance any preliminary diplomatic understanding or sign the proposed framework agreement.
While Speaker Ghalibaf explicitly requested liquid financial assistance to ease Iran's severe domestic economic pressures, Qatar’s counteroffer effectively bars Iran from using the capital at its own discretion in a blow to Tehran’s strategy in US talks.
Rather than gaining direct access to the cash, Tehran is now forced to spend the capped credit line solely within the Qatari market for essential commodities.
To prevent the dispute from derailing the broader, highly sensitive framework talks with the United States, which aim to secure a regional ceasefire and reopen the strategic Strait of Hormuz, all participating parties have reportedly agreed to keep the details of this financial disagreement strictly confidential.