China holds the biggest share
The largest portion of Iran’s frozen wealth is believed to be in China, where estimates range from $20 billion to $50 billion, according to the Wall Street Journal and other assessments. Much of the money comes from years of oil sales to China, which has remained Iran’s biggest energy customer despite US sanctions.
Because most international energy transactions pass through the global dollar-based financial system, many payments linked to Iranian oil exports have remained inaccessible to Tehran. Some funds have reportedly been used to pay for Chinese goods and machinery, but large sums remain trapped.
Why the money is frozen
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Most funds come from Iranian oil, gas and electricity sales.
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US sanctions restrict banks and governments from transferring the money to Tehran.
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Some funds can only be used for humanitarian purchases such as food and medicine.
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Several accounts are held in local currencies rather than US dollars.
Why it matters now
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Iran wants access to at least $24 billion as part of talks with Washington.
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Frozen assets could provide a major boost to Iran’s sanctions-hit economy.
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The funds are a key bargaining chip in negotiations over sanctions relief and a broader US-Iran agreement.
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Access to the money could help Tehran stabilise its currency, finance imports and support economic recovery.
At a glance
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Iran says more than $100bn is blocked abroad.
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Outside estimates are generally lower.
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China is believed to hold the largest share.
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India remains among the countries holding billions linked to pre-2018 oil purchases.
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The fate of the funds is likely to be one of the toughest issues in any final US-Iran deal.
Iraq, India and South Korea
Iraq is believed to hold between $10 billion and $15 billion tied to purchases of Iranian electricity and natural gas. US restrictions have prevented Baghdad from freely transferring much of that money to Tehran.
India and South Korea each account for roughly $7 billion. Before Washington reimposed sanctions in 2018, both countries were among Iran’s largest oil buyers. Payments for those crude purchases were subsequently frozen in local banking systems.
Qatar’s restricted billions
One of the most politically sensitive pools of money sits in Qatar.
Around $6 billion originally held in South Korea was transferred to Qatar in 2023 as part of a US-Iran prisoner exchange arrangement. The funds were earmarked for humanitarian purposes but access was later tightened following the October 2023 Hamas attacks on Israel.
Smaller amounts are also believed to be held in Japan, Oman, Luxembourg and other jurisdictions, reflecting decades of sanctions disputes and restrictions on Iranian financial transactions.
Why the money matters now
For Iran, the frozen assets represent one of the fastest ways to inject hard currency into an economy struggling with inflation, currency weakness and years of sanctions pressure.
For Washington, the funds have become a key source of leverage.
Reuters reported last week that Iran was pushing for the release of between $6 billion and $12 billion as an initial step, while US negotiators preferred a phased approach tied to humanitarian spending and future compliance commitments.
The Wall Street Journal reported that Iranian officials are now seeking access to at least $24 billion as part of a broader settlement. At the same time, draft agreements under discussion envision eventual access to larger sums, renewed oil sales and wider sanctions relief if Tehran meets its commitments.
Whether those funds are ultimately released could become one of the most important tests of any future US-Iran agreement — and one of the biggest economic prizes Tehran has pursued for years.
A Senior Associate Editor with more than 30 years in the media, Stephen N.R. curates, edits and publishes impactful stories for Gulf News — both in print and online — focusing on Middle East politics, student issues and explainers on global topics.
Stephen has spent most of his career in journalism, working behind the scenes — shaping headlines, editing copy and putting together newspaper pages with precision.
For the past many years, he has brought that same dedication to the Gulf News digital team, where he curates stories, crafts explainers and helps keep both the web and print editions sharp and engaging.
