3 min readUpdated: Apr 11, 2026 03:46 PM IST
A senior Iranian source has told news agency Reuters Saturday that the US had agreed to release Iranian frozen assets, which were held in Qatar and other foreign banks, even as American and Iranian delegations arrived in Islamabad for ceasefire talks. This is seen as a significant development in view of reaching a deal with Washington in talks in Pakistan.
A second Iranian source said the United States had agreed to release $6 billion of frozen Iranian funds held by Qatar, the report added.
The United States has not made any public comments on the issue of unfreezing assets.
The source, who declined to be named due to the sensitivity of the matter, told Reuters that unfreezing the assets was “directly linked to ensuring safe passage through the Strait of Hormuz”, which is expected to be a key issue in the talks.
JD Vance-led US team, Iranian delegation in Islamabad for peace talks
Senior US and Iranian leaders were in the Pakistani capital Islamabad on Saturday for negotiations to end their six-week-old war, although Tehran threw the talks into doubt by saying they could not begin without commitments on Lebanon and sanctions.
The US delegation, led by Vice President JD Vance and including President Donald Trump’s special envoy Steve Witkoff and son-in-law Jared Kushner, landed in two US Air Force planes at an air base in Islamabad on Saturday morning, where they were received by Pakistan’s army chief, Field Marshal Asim Munir, and Foreign Minister Ishaq Dar.
The Iranian delegation, led by Parliamentary Speaker Mohammad Baqer Qalibaf and Foreign Minister Abbas Araqchi, arrived on Friday dressed in black in mourning for the death of Supreme Leader Ayatollah Ali Khamenei and other Iranians killed in the conflict. They carried shoes and bags of some of the students killed during a bombing by the US of a school next to a military compound, the Iranian government said on X.
همراهان من در این پرواز#Minab168 pic.twitter.com/xvXmDlSDiF
— محمدباقر قالیباف | MB Ghalibaf (@mb_ghalibaf) April 10, 2026
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FUNDS FROZEN FOR NEARLY A DECADE
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The $6 billion was first blocked in 2018 and was scheduled to be unlocked in 2023 under a prisoner exchange agreement between Washington and Tehran. However, the Biden administration re-froze the assets after the Hamas-led attack on Israel on October 7, 2023, given Hamas’s ties to Iran. At the time, US officials indicated Tehran would not be granted access to the money indefinitely and that Washington reserved the authority to lock the funds down entirely.
The money originated from Iranian crude exports to South Korea and was trapped in South Korean banking channels after Donald Trump, during his first presidency, withdrew from the Iran nuclear agreement and reinstated sanctions in 2018.
As part of the Doha-brokered prisoner swap finalised in September 2023, the funds were moved into Qatari-held bank accounts. The deal saw five American detainees freed from Iranian custody in return for the release of the frozen assets and five Iranian nationals held in the US.
US officials maintained at the time that the money could only be spent on humanitarian needs — routed through vetted suppliers for essentials such as food, pharmaceuticals, medical devices and agricultural products entering Iran, all under the watch of the U.S. Treasury.
✦ FEBRUARY 28, 2026
Operation Epic Fury — The Opening Salvo
At 06:35 UTC, CENTCOM announced joint US-Israeli airstrikes against Iran — launched while nuclear negotiations were still underway. B-2 stealth bombers, B-1 Lancers and B-52 Stratofortresses struck missile sites, command-and-control infrastructure and radar installations. Israeli fighter jets carried out decapitation strikes, killing Supreme Leader Ali Khamenei at his residential compound. Iran retaliated within hours, launching hundreds of ballistic missiles and drones at Israel and US bases across six Gulf states. Tehran closed the Strait of Hormuz, shutting off 20% of global oil supply.
✶
6
Gulf states hit by Iranian retaliation
✈
200+
Israeli jets in largest-ever combat sortie
⚓
20%
Global oil supply through Hormuz — now shut
★
Decapitation strikes
Khamenei and several top officials killed at his residential compound. Defence Minister Nasirzadeh and IRGC commander Pakpour also confirmed dead.
→
Iran’s retaliation
Hundreds of missiles and drones targeted Israel, US bases in Bahrain, Kuwait, Qatar, UAE, Jordan and Saudi Arabia. A drone struck Britain’s Akrotiri base on Cyprus.
⚓
Hormuz blockade
Iran’s IRGC Navy blew up 10 commercial vessels attempting to transit the strait. A critical chokepoint for ~20% of global oil was sealed shut.
→ Key Milestones — March 1 to April 7
✈ MAR 1 — DAY 2
Dubai airport damaged by Iranian drone strikes. Flights across the Middle East came to a near-complete halt. Iranian missiles hit Bahrain, Kuwait, Saudi Arabia and UAE.
◆ MAR 6 — DAY 7
Trump posts on Truth Social demanding Iran’s “unconditional surrender.” Iran dismisses the statement.
★ MAR 7 — DAY 8
Assembly of Experts appoints Mojtaba Khamenei, son of the slain leader, as Iran’s new Supreme Leader — considered more hawkish than his father.
⛽ MID-MARCH — DAYS 15–20
Kharg Island — Iran’s oil export hub — bombed. UNHCR reports 3 million internally displaced. More than 30 universities struck. IRIS Dena frigate sunk by USS Charlotte near Sri Lanka.
● MAR 28 — DAY 29
CENTCOM confirms 11,000+ targets struck across Iran. Joint strikes hit Iran University of Science and Technology among civilian sites.
✶ APR 3 — DAY 35
US F-15E Strike Eagle shot down over Iran — first US fighter jet loss. Crew ejected; pilot rescued same day, weapons systems officer found alive 48 hours later. A-10 Warthog also downed near Strait of Hormuz.
⚖ APR 5 — DAY 37
Pakistan proposes 45-day ceasefire. Iran rejects it, submits its own 10-point peace plan instead. Trump threatens to destroy Iran’s power plants and bridges.
⏱ APR 7 — DAY 39
Trump issues deadline: total destruction of Iranian infrastructure if Hormuz not reopened by 8pm Washington time. Iran’s military calls threats “delusional.”
● Human Cost — As of April 8
✶
3,636
Killed in Iran (HRANA, Apr 7)
✶
1,784
Killed in Lebanon (Health Ministry)
↔
3M
Internally displaced in Iran
◆
13
US service members killed
◆
28
Killed in Gulf states
● Global Fallout
⚓
Strait of Hormuz blockade
Closed since Feb 28. Post-ceasefire traffic at roughly 10% of normal. Over 600 vessels stranded in the Gulf region, per Lloyd’s List.
✈
Aviation disruption
Dubai International Airport damaged on Day 2, briefly halting all flights. Middle East air travel came to a near-complete stop.
⛽
Energy shock
Brent crude hit $119.50/barrel. Saudi SATORP refinery shut after attack. IEA released 400 million barrels from global reserves. US gas prices up 55 cents year-on-year.
✶
Hardware losses
US: F-15E and A-10 shot down; 5 refuelling tankers damaged at Prince Sultan Air Base. Iran: 19 warships sunk, 1 submarine destroyed, 30+ minelayers hit.
⚖ APRIL 7–8, 2026
Pakistan Brokers a Two-Week Truce
After 40 days of war, Pakistani PM Shehbaz Sharif mediated a ceasefire between the US and Iran. Trump announced the suspension of attacks on condition Iran reopens the Strait of Hormuz. Iran’s Supreme National Security Council claimed “nearly all war objectives have been achieved.” Israel endorsed the truce with Iran but said it does not extend to Lebanon — a position Iran and Pakistan both dispute.
⚖ US Terms vs Iran’s 10-Point Plan
★ US DEMANDS
End nuclear program
Dismantle enrichment capability in exchange for civilian nuclear investment
✦ IRAN’S PLAN
Right to enrich uranium
Pledge not to build nuclear weapons, but retain enrichment capability
★ US DEMANDS
Reopen Hormuz freely
Full restoration of free international passage
✦ IRAN’S PLAN
Controlled passage
Transit coordinated with Iran’s armed forces; Iran and Oman charge fees for reconstruction
★ US DEMANDS
Cut proxy support
Restrict Iran’s backing of armed groups including Hezbollah
✦ IRAN’S PLAN
US troops out of Gulf
Full withdrawal of US combat forces from all regional bases
✦ ISLAMABAD TALKS — APR 10–11
High-Stakes Negotiations Begin
VP JD Vance, envoys Steve Witkoff and Jared Kushner arrived in Islamabad on April 10. Iran’s delegation — led by Parliament Speaker Mohammad Bagher Qalibaf and FM Abbas Araghchi — is using Tehran’s 10-point plan as the basis for talks. PM Sharif invited both sides to negotiate “a conclusive agreement to settle all disputes.”
✶ FLASHPOINT — LEBANON
Israel’s Offensive Threatens to Unravel the Truce
Israel launched massive airstrikes on Lebanon on the day the ceasefire was announced — killing 303 people on April 8 alone. Netanyahu insists the truce does not cover Lebanon. Iran has warned it may exit the ceasefire if attacks on Hezbollah continue. US-brokered Israel-Lebanon talks are expected in Washington next week.
⚓ HORMUZ STATUS
Strait Still Operating at a Trickle
Despite ceasefire terms requiring Iran to reopen the waterway, only about a dozen ships transited in the first two days. Shipping analysts say 600+ vessels remain stranded, and even at normal pace, clearing the backlog would take over 10 days. Iran says passage requires coordination with its armed forces.
Sources: Al Jazeera · CENTCOM · HRANA · TIME · CBS News · NBC News · NPR · CNN · Britannica · Lloyd’s List
(With inputs from Reuters)
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