U.S. President Trump has confirmed the release of frozen Iranian funds designated for food purchases, marking a significant shift from the earlier position of withholding the $6 billion pending Tehran's compliance with a Memorandum of Understanding (MOU). Trump also stated that he does not wish to preside over a global depression, signaling the economic considerations behind the decision.

Background: The Frozen Funds Standoff

The United States had previously held back the entirety of the $6 billion in Iranian frozen funds earmarked for humanitarian goods under the terms of an MOU. A U.S. administration official, cited by the New York Post, had confirmed that the funds would remain frozen until Tehran met its obligations under the agreement. The following table summarizes the key parameters of the original standoff:

Trump's Reversal and Latest Confirmation

In a notable policy shift, Trump has now confirmed the release of the Iranian funds specifically for food purchases. Alongside this announcement, Trump stated that he does not wish to preside over a global depression, indicating that broader economic considerations have factored into the decision. No further details regarding the timeline or specific conditions attached to the fund release were available in the provided information.

President Donald Trump stated that Iran still has some missiles remaining, but asserted that the United States could eliminate them if necessary. The remarks came alongside his earlier position that the ongoing situation with Iran is fundamentally about denuclearisation and not war, clarifying that the U.S. approach remains focused on eliminating nuclear threats. Jared Kushner and U.S. special envoy Steve Witkoff arrived in Doha, Qatar, for indirect talks with Iranian officials through Qatari mediators. While Trump expressed confidence in the diplomatic process, Tehran reportedly declined direct negotiations with U.S. envoys, maintaining a cautious stance.

Market Reaction to Diplomatic Developments

Trump's comments and the broader diplomatic momentum contributed to a decline in energy commodities, as hopes for avoided disruptions to global crude supplies grew. The following table summarises key commodity and currency movements:

Global Equity Performance

Asian markets experienced significant volatility during the period, while U.S. stock futures showed mixed results. The following table summarises key index movements:

Diplomatic Context and Recent Tensions

The diplomatic effort follows renewed military exchanges that briefly threatened a 60-day truce between Washington and Tehran. Iran reportedly targeted two commercial vessels, prompting U.S. retaliatory strikes. The two countries had signed a 14-point memorandum of understanding on June 17 aimed at reducing hostilities and safeguarding energy shipments through the Strait of Hormuz, a strategic waterway that carries roughly 20% of the world's oil trade.

Qatar's Foreign Ministry spokesperson, Majed al-Ansari, reported that separate indirect meetings in Doha made "positive progress" on issues related to the memorandum of understanding. He noted that the discussions built on a previous high-level meeting in Switzerland, with both sides agreeing to resume talks at the earliest possible time following funeral ceremonies for Iran's former supreme leader. Iranian state media also reported a foreign container ship ran aground in the Strait of Hormuz after travelling through an unapproved route, though no disruption to oil flows was reported.