Lebanon and Frozen Assets: What Delays the Iran War Deal?

President Donald Trump’s position on a possible Iran agreement appeared to shift this week from signaling that Washington and Tehran were close to a deal to attaching a broader regional framework that involves additional Middle Eastern and Muslim-majority countries joining the Abraham Accords and normalize relations with Israel.

Trump said the emerging deal would either be “great and meaningful” or there would be no deal, while also saying he was “mandatorily requesting” that countries including Saudi Arabia, Qatar, Egypt, Jordan, Turkey and Pakistan sign onto the accords.

The new demand has added uncertainty to negotiations that had focused more narrowly on extending the ceasefire, reopening the Strait of Hormuz, lifting the U.S. blockade on Iranian ports and creating a window for renewed nuclear talks.

Iran’s Foreign Ministry spokesperson Esmail Baghaei acknowledged progress on “a large portion” of the issues but rejected the idea that a final agreement was imminent, citing contradictory U.S. positions and Israeli interference.

Iranian sources described the draft memorandum as requiring an end to the war “on all fronts, including Lebanon.” Israel told Washington that any deal should maintain its freedom of action in Lebanon against Hezbollah, but Tehran, the sources said, has resisted any language that would allow Israel continued its attacks on Lebanon under the banner of “self-defense.”

IRGC-linked Tasnim News said Iran had accepted no nuclear concessions at this stage and that the possible memorandum should include a U.S. oil-sanctions waiver, a 30-day period for Hormuz arrangements, a 60-day period for nuclear talks, and a broader end to the war fronts, including Lebanon.

Iranian sources added Tehran wants at least part of its frozen assets released at the start of any memorandum, with a mechanism for releasing the rest during negotiations. Earlier reporting said Washington had considered releasing $20 billion in Iranian frozen assets in exchange for restrictions on Iran’s enriched uranium stockpile, but more recent reporting cited Iranian officials saying U.S. domestic pressure had pushed Trump to backtrack on releasing as much as $12 billion held in Qatar.

Pakistan, which has acted as a key intermediary, had previously floated a two-stage framework: an immediate ceasefire and reopening of the Strait of Hormuz, followed by 15 to 20 days to finalize a broader settlement.

The proposed understanding would be finalized electronically through Pakistan, with Islamabad acting as the sole communication channel in the talks. But Iranian officials have resisted a short-term or temporary formula, insisting instead on a memorandum based on previously agreed conditions, including a full ceasefire, lifting of the blockade and guarantees against renewed U.S. or Israeli attacks.

The negotiations are unfolding amid renewed military friction. U.S. Central Command said it carried out “self-defense” strikes in southern Iran, while Tehran accused Washington of a “grave violation” of the ceasefire. Secretary of State Marco Rubio said a deal remained possible but warned that Trump would accept only a “good deal” or no deal at all.