Iran's Frozen Assets: A Closer Look at the Impact of Sanctions

This article delves into the intricacies of Iran's frozen assets, which have been significantly impacted by US sanctions since the 2018 withdrawal from the nuclear deal. With estimates of total frozen assets varying widely, the focus is on how access to these funds could stabilize Iran's economy. The piece breaks down the amounts owed by various countries, including China, Iraq, and India, highlighting the ongoing challenges Tehran faces in securing financial relief. As negotiations continue, the implications for Iran's economic future remain uncertain.

By Narendra Chaudhary Jun 18, 2026, 04:53 IST

Overview of Iran's Frozen Assets

Since the 1979 revolution, numerous Iranian assets have been frozen, with many linked to recent oil sales to nations such as China, India, South Korea, and Japan. The situation worsened after the US exited the nuclear deal in 2018, reinstating extensive sanctions on Iran. Estimates regarding the total value of Iran's frozen assets vary significantly; the Iranian government suggests it exceeds $100 billion, while independent assessments indicate a lower figure. Currently, Tehran aims to gradually access an initial amount of approximately $24 billion.

Experts believe that even partial access to these funds could aid in stabilizing Iran's currency and alleviating inflation. However, they caution that Iran will likely continue to seek broader sanctions relief and long-term financial stability. As noted by Esfandyar Batmanghelidj, CEO of the Bourse & Bazaar Foundation, while limited access may offer temporary relief, it won't address Iran's larger economic issues.

Breakdown of Frozen Assets by Country

China: $20 billion to $50 billion

As Iran's primary oil buyer, estimates of the frozen Iranian assets in China range from $20 billion to $50 billion. The US has effectively limited payments for Iranian oil through its control over the dollar-based financial system, enabling the Treasury Department to restrict access for institutions that breach sanctions. This strategy has been a cornerstone of US sanctions policy for the last twenty years.

Despite these sanctions, reports indicate that China has continued to import Iranian oil through alternative channels. The Wall Street Journal has noted that Iran has managed to access some of these funds indirectly to procure Chinese machinery, auto parts, and other goods.

Iraq: $15 billion

Iraq owes Iran around $15 billion, primarily for electricity and natural gas imports. However, US sanctions have long hindered Baghdad's ability to make payments to Tehran, with the Trump administration tightening these restrictions further.

India: $7 billion

Before the US's withdrawal from the 2015 nuclear agreement, India was Iran's second-largest oil buyer. Following the reinstatement of sanctions, Indian banks ceased payments for Iranian crude, resulting in approximately $7 billion being frozen.

South Korea: $7 billion (historical)

South Korea was also a significant purchaser of Iranian oil prior to sanctions, with around $7 billion in payments frozen. Some of these funds were later transferred to Qatar as part of a prisoner exchange deal involving the US.

Qatar: $6 billion

Qatar currently holds about $6 billion in Iranian assets, initially intended for humanitarian purposes. Following the October 7, 2023 attacks on Israel by Hamas, the US has reconsidered its stance, but has yet to authorize the release of these funds, with negotiations ongoing.

Other Holdings: $8 billion (estimated)

Additional Iranian assets are believed to be frozen in countries like Japan, Luxembourg, Oman, and the US. These smaller amounts complicate the discussions surrounding sanctions relief and financial access for Iran.