Adviser to Iran's supreme leader says talks stalled over $24b assets, warns of wider conflict

A potential peace agreement between the United States and Iran remains stalled over the release of $24 billion in frozen Iranian assets, according to Mohsen Rezaei, military adviser to Supreme Leader Ayatollah Mojtaba Khamenei.

In an exclusive interview with CNN in Tehran yesterday (5 June), Rezaei said negotiations have reached a deadlock and urged US President Donald Trump to take steps to move the process forward.

"The negotiations are at a deadlock and Trump must break this deadlock. The ball is in Trump's court," he said.

According to reports, Iran has demanded the release of $12 billion immediately after signing an interim agreement, with a further $12 billion to be released at a later stage.

Rezaei described the release of the funds as a trust-building measure and said it could open a new chapter in relations between the two countries.

"If he wants to reach an agreement with Iran, this $24 billion is a test of trust that Iran wants to have with Trump. This is our own money, not America's money," he said.

US officials have reportedly expressed concerns that releasing the funds could weaken Washington's leverage in negotiations. Trump has previously insisted that any agreement with Iran must be stronger than the 2015 nuclear deal.

Rezaei also warned that any renewed military confrontation could expand beyond the Persian Gulf.

He said Iran could target additional US military bases and broaden the scope of conflict to include 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, while adding that the likelihood of war remains low.

On the possibility of a meeting between Trump and Khamenei, Rezaei dismissed the prospect, saying it will not happen at the current stage of negotiations.

He also reiterated Iran's position that it shares sovereignty over the Strait of Hormuz with Oman and suggested that vessels using the strategic waterway could be charged maintenance fees to support its management.

Rezaei, a former commander of the Islamic Revolutionary Guard Corps (IRGC), questioned the durability of any future agreement with Washington, citing Trump's withdrawal from the 2015 nuclear accord.

He said Iran is prepared for any future military action and claimed the country's ground forces are significantly stronger than its missile capabilities.

"If the United States invades our territory, then the world will understand Iran's true capabilities," he said.

Rezaei described the current conflict as Iran's first triumph against its enemies in the Islamic republic's 47-year history. 

"This is the first time Iran has emerged victorious in wars, while in previous wars Iran has always been defeated," he said.