Qatar-Pakistan Plan Offers Iran Interest on $6 Billion Frozen Funds for Secret Nuclear Inspections; Oil Slides

Mediators from Qatar and Pakistan have reportedly put a new compromise in front of Washington and Tehran, one that would let Iran collect the interest earned on $6 billion of its money sitting in Qatari banks in exchange for allowing the UN nuclear watchdog quiet access to its nuclear facilities. The report, first carried on Tuesday by the London-based Arabic daily Al-Araby Al-Jadeed and later expanded on by Israel's Channel 12, said the plan had US backing and a positive initial response from Iran. Neither government has confirmed it.

What the proposal reportedly contains

The plan has two parts. The first is financial: Iran would receive the interest that has built up on the $6 billion parked in Qatar since a 2023 US-Iran prisoner exchange. That money was technically unfrozen at the time, but Tehran has never been able to draw on it. Handing over only the accrued interest, rather than the principal, is a narrower concession than Iran has been asking for.

The second part concerns oversight. Inspectors from the International Atomic Energy Agency would be allowed confidential visits to Iranian nuclear sites, with no public announcement. That would give Washington a way to verify the state of Iran's programme without forcing Tehran into a visible climbdown.

Pakistan's army chief, Field Marshal Asim Munir, reportedly carried the proposal to Iranian officials during a visit to Tehran on Tuesday. Qatar's foreign ministry spokesman, Majed al-Ansari, separately said negotiations between Iran and the United States are continuing despite rising tensions in the region.

Tehran signals no shift

Iran's public line was far less upbeat. Parliament Speaker Mohammad Bagher Ghalibaf told Munir that Tehran had nothing new to put on the table and that the US must first meet the seven conditions Iran set out in New York, according to Iran's parliamentary news agency. He accused the Trump administration of breaching the Islamabad memorandum and said American military threats would not change Iran's decisions.

A diplomat involved in the talks also told Bloomberg that reports of a deal being close were wrong, though the diplomat did not deny that discussions are under way. That pushback took some of the shine off the initial market reaction.

Markets move first, ask questions later

Energy traders reacted fast. West Texas Intermediate crude, which had briefly traded above $100 a barrel earlier in the day on worries about Houthi attacks on Saudi infrastructure and shipping near the Strait of Hormuz, fell back to around $95.65 after the report. Brent was down more than 1% at roughly $108.

The US Dollar Index slipped to about 101.5, its weakest level since October 1, before recovering to near 101.70 once the denial surfaced. The 10-year US Treasury yield eased by about 6 basis points to near 5.08%, and the S&P 500 traded around 0.6% higher.

Why it matters for India

For India, which imports most of its crude and has seen LPG supplies squeezed by disruption in the Gulf, any credible path to calmer shipping through Hormuz is significant. The report surfaced after Indian markets had already closed, with the Nifty ending the session 1.1% lower at about 22,889 and the rupee near 94.7 to the dollar. If the oil pullback holds into Wednesday's session, it would ease some of the pressure on both.

For context on the earlier US offer of sanctions relief tied to nuclear steps, see our earlier coverage.

The key test now is whether either capital confirms the framework. Until then, the proposal is best read as a sign that mediation channels are active, not as evidence that a settlement is near.

This is an original summary based on public reporting. See our editorial policy for how we source, write, and correct our stories.