Some Iranian assets have remained frozen for nearly as long as the Islamic Republic has existed, dating back to the 1979 revolution. However, most of the blocked funds come from more recent oil sales to countries such as China, India, South Korea and Japan. These payments became trapped after the United States, under President Donald Trump, withdrew from the 2015 nuclear deal in 2018 and reimposed wide-ranging sanctions on Iran.
Estimates of Iran’s frozen assets abroad vary. The Iranian government says the total is at least USD 100 billion, while independent analysts believe the amount is much lower. Iran is currently focused on securing the phased release of an initial USD 24 billion.
Economists say access to even part of these funds could help support Iran’s currency and ease inflation. However, experts also warn that Iran would still seek broader sanctions relief and long-term economic normalisation. As Esfandyar Batmanghelidj, chief executive of the Bourse & Bazaar Foundation, noted, partial access to funds could provide short-term relief, but would not resolve Iran’s wider economic challenges.
China Holds the Largest Share
China is Iran’s biggest oil customer, and estimates suggest Iranian assets frozen there range from USD 20 billion to USD 50 billion. The US has been able to restrict payments for Iranian oil through its control of the global dollar-based financial system. This allows the US Treasury Department to block financial institutions that breach sanctions from accessing dollar clearing. Over the past two decades, this has become a key tool in US sanctions policy.
Despite sanctions, reports indicate that China has continued importing Iranian oil through indirect channels. According to The Wall Street Journal, Iran has also been able to use some of these funds indirectly to buy Chinese machinery, vehicle parts and other goods.
Iraq Owes Iran Around USD 15 Billion
Iraq owes Iran an estimated USD 15 billion, mainly for electricity and natural gas imports. However, US sanctions have long limited Baghdad’s ability to transfer payments to Tehran. The Trump administration tightened these restrictions further by preventing Iraq from directly paying Iran for energy supplies.
India and South Korea Hold Billions
Before the US withdrew from the nuclear agreement, India was Iran’s second-largest oil customer. After sanctions were reimposed, Indian banks stopped payments for Iranian crude oil, leaving around USD 7 billion frozen.
South Korea was also a major buyer of Iranian oil before sanctions were reinstated. About USD 7 billion was frozen, although part of this amount was later transferred to Qatar as part of a prisoner exchange deal involving the United States.
Qatar and Other Countries Also Hold Assets
Qatar currently holds around USD 6 billion in Iranian assets, which were originally set aside for humanitarian purposes. The US reviewed its policy after the October 7, 2023 attacks on Israel by Iran-backed Hamas. However, Washington has not yet approved the transfer of these funds, and talks over their release are continuing.
Additional Iranian assets, estimated at around USD 8 billion, are believed to be held in countries including Japan, Luxembourg, Oman and the United States. These smaller holdings add further complexity to ongoing negotiations over sanctions relief and Iran’s access to international financial resources.
First published on: Jun 18, 2026 07:16 AM IST
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