Iran could buy US agricultural products using unfrozen assets

The U.S. administration is considering directing part of Iran’s unfrozen assets toward purchases of American agricultural products, including soybeans, corn, and wheat. U.S. Vice President JD Vance raised the idea during negotiations in Switzerland, saying the mechanism could be implemented with Qatar’s involvement.

According to Vance, if Iranian funds are released, their use would be overseen by the United States and Qatar, while the money would be allocated to food purchases for the Iranian population. U.S. media reports indicate that Iran has billions of dollars in frozen assets abroad, including around $6 billion held in Qatar.

A potential resumption of supplies could support U.S. farmers, although agricultural trade between the United States and Iran has remained limited in recent decades. The highest level of U.S. agricultural sales to Iran was recorded in 2008 at nearly $593 million, while Iran purchased $318 million worth of U.S. soybeans in 2018.

At the same time, the U.S. Treasury Department temporarily eased sanctions to allow Iran to sell petroleum products for at least 60 days. The move contributed to lower oil prices and strengthened expectations that the Strait of Hormuz could reopen, which is critical for energy and fertilizer supplies.

However, any potential Iranian purchases of U.S. grain will depend on the outcome of negotiations and the terms of asset releases. The reopening of the Strait of Hormuz also remains an important factor for global agricultural markets, as it handles significant volumes not only of oil but also of inputs used in mineral fertilizer production.

Tags: sanctions, Iran, corn, soybean, wheat, USA