US official denies report Washington agreed to unfreeze Iran assets

Iran's new supreme leader suffered severe, disfiguring wounds in the airstrike that killed his father

FE Team | Published: April 11, 2026 21:30:39

WASHINGTON, Apr 11 (AFP/Reuters): A senior US official denied on Saturday a report saying Washington had agreed to release Iran's frozen assets held in Qatar and other foreign banks.
Iranian and US delegations have arrived in Islamabad, Pakistan for talks aimed at ending the war in the Middle East.
Tehran earlier said any agreement on a permanent end to fighting must include the unfreezing of sanctioned Iranian assets and an end to Israel's war on Hezbollah in Lebanon.
An unnamed "senior Iranian source" told news outlet Reuters that the United States had agreed to unfreeze the assets and that the move was directly linked to ensuring safe passage in the Strait of Hormuz.
In a message from the White House, a senior US official responded to the report saying, "False. The meetings have not even started yet."
On Saturday, Pakistan Prime Minister Shehbaz Sharif met US Vice President JD Vance in Islamabad, the former's office said, adding that peace talks to end the Middle East war had "commenced."
Iran's new Supreme Leader Mojtaba Khamenei is still recovering from severe facial and leg injuries suffered in the airstrike that killed his father at the beginning of the war, three people close to his inner circle told Reuters.
Khamenei's face was disfigured in the attack on the supreme leader's compound in central Tehran and he suffered a significant injury to one or both legs, all three sources said.
The 56-year-old is nonetheless recovering from his wounds and remains mentally sharp, according to the people, who requested anonymity to discuss sensitive matters. He is taking part in meetings with senior officials via audio conferencing and is engaged in decision-making on major issues including the war and negotiations with Washington, two of them said.
The question of whether Khamenei's health allows him to run state affairs comes during Iran's moment of gravest peril for decades, with high-stakes peace talks with the United States opening in the Pakistani capital Islamabad on Saturday.
The accounts of the people close to Khamenei's inner circle provide the most detailed description of the leader's condition for weeks. Reuters couldn't independently verify their descriptions.
Khamenei's whereabouts, condition and ability to rule still largely remain a mystery to the public, with no photo, video or audio recording of him published since the air attack and his subsequent appointment as his father's replacement on March 8.
Iran's United Nations mission did not respond to Reuters questions about the extent of Khamenei's injuries or the reason he has not yet appeared in any images or recordings.
Khamenei was wounded on February 28, the first day of the war launched by the U.S. and Israel, in the attack that killed his father and predecessor Ayatollah Ali Khamenei, who had ruled since 1989. Mojtaba Khamenei's wife, brother-in-law and sister-in-law were among other members of his family killed in the strike.
There has been no official Iranian statement on the extent of Khamenei's injuries. However, a newsreader on state television described him as a "janbaz", a term used for those badly wounded in war, after he was named supreme leader.
The accounts of Khamenei's injuries tally with a statement made by U.S. Secretary of Defense Pete Hegseth on March 13 when he said that Khamenei was "wounded and likely disfigured".
A source familiar with U.S. intelligence assessments told Reuters that Khamenei was believed to have lost a leg. The CIA declined to comment on Khamenei's condition. The Israeli prime minister's office didn't respond to questions.
Alex Vatanka, senior fellow at the Middle East Institute, said that, regardless of the severity of his injuries, it was unlikely the new and inexperienced leader would be able to command the overarching power wielded by his father. While he is seen to represent continuity, it could take years for him to build up the same level of automatic authority, Vatanka added.
"Mojtaba will be one voice but it will not be the decisive one," he said. "He needs to prove himself as the credible, powerful, overriding voice. The regime as a whole has to make a decision in terms of where they are going to go."