Iran has warned the United States of a wider war if the Trump administration does not agree to release $24 billion in frozen Iranian assets, a top Iranian official told CNN on Friday, June 5. Mohsen Rezaei, military adviser to Supreme Leader Ayatollah Mojtaba Khamenei, said the US would “enter into a dark corridor” should it resume fighting.
“The negotiations are at a deadlock and (US President Donald) Trump must break this deadlock,” Rezaei said in an exclusive interview in Tehran. “The ball is in Trump’s court.” Iran has reportedly demanded the release of $12 billion in frozen funds as soon as an interim agreement is signed, and another $12 billion at a later stage.
Trust-Building and Frozen Assets
Rezaei framed the demand for releasing frozen Iranian assets as a trust-building measure. He said the Trump administration’s potential release of the funds would be “a new horizon for the future” of Iran and America. “If he (Trump) wants to reach an agreement with Iran, this $24 billion is a test of trust that Iran wants to have with Trump – this is a test that America must pass and the path will be opened,” he stated. “This is our own money, not America’s money.”
US officials are concerned that any unfreezing of funds at this stage could remove a key leverage point over the regime. Trump has demanded that any agreement appear far stronger than the nuclear deal struck in 2015, and to avoid anything that could be construed as handing over “pallets of cash,” a phrase he has used to criticize then-President Barack Obama’s decision to give Tehran financial compensation.
Warning Against Return to War
Rezaei warned that Iran will “drag the war” beyond the Persian Gulf if the US resumes the conflict, potentially expanding military operations from the Strait of Hormuz to the Indian Ocean, the Bab al-Mandab Strait, the Red Sea, and the Mediterranean Sea. “We will give another dimension to the war by attacking these other American bases that we have been attacking so far,” he said, adding that “the possibility of war is low.”
Potential Meeting Between Trump and Khamenei
He rejected prospects of a meeting between the two leaders. “This will not happen, right now we are in the first stage of negotiations and Mr. Trump has brought the negotiations to a standstill. This will not happen.” This week, Trump said he and Khamenei “seem to be getting along well” and that he would be “honored” to meet him.
Sovereignty Over the Strait of Hormuz
Rezaei said Iran and Oman have sovereignty over the key waterway through which one-fifth of the world’s oil and liquefied natural gas passed before the war, and will therefore manage it together. He said Iran would charge a maintenance fee, arguing it should not bear the cost of managing the strait.
Part of the IRGC’s old guard, Rezaei fought in the Iran-Iraq War and went on to lead the force from 1981 to 1997, helping shape it into one of the Islamic Republic’s most powerful institutions. He later joined the Expediency Council, which advises the supreme leader, and served as a vice president under former President Ebrahim Raisi. Rezaei also ran for president four times but never won.
During the 40-day US-Israeli war on Iran that began in late February, Iran retaliated by targeting 12 countries across the region, striking military facilities, energy infrastructure, and civilian sites.
In his interview, he cast doubt on the durability of a nuclear agreement with Trump, citing his withdrawal from the 2015 Iran nuclear deal and what he said was his strategy of “ambiguity” in talks. Should talks fail, Rezaei said Iran is prepared for a potential US invasion of its territory, “then the world will understand Iran’s true capabilities, because our land power is many times greater than our missiles.”
