India, June 12 -- The United States and Iran are reportedly discussing a proposal that could allow Tehran access to over $16 billion in restricted funds held in Qatar and other global locations, according to a Politico report citing European officials and sources familiar with the negotiations.

The move is being seen as part of broader diplomatic efforts aimed at easing tensions and advancing a potential peace framework between Washington and Tehran. Earlier, the US had permitted limited use of these assets for specific humanitarian purchases, but later froze access during the Israel-Hamas conflict in 2023.

Under the current proposal, Iran would be allowed to use the frozen funds in a controlled manner without violating US sanctions. Ho...