US and Iran cannot agree on compensation - report

US and Iran cannot agree on compensation - report
© Photo: Maria Novoselova/ Vestnik Kavkaza

One of the key sticking points remaining in negotiations between the U.S. and Iran centers on monetary compensation, as U.S. President Donald Trump is eager to strike a deal that will be viewed as superior to a prior agreement inked during the Obama administration, a U.S. official told CNN.

Iran has communicated to mediators that they want some form of financial compensation to be released as soon as the two sides agree on an initial memorandum of understanding, the official said, and not withheld for a future date.

But Trump administration officials are concerned that any unfreezing of funds at such an early stage could lessen the economic pain the US has inflicted on Iran throughout the course of the war - potentially eliminating, or at least weakening, a key leverage point Washington holds over Tehran.

Trump has made clear to his team that he will not sign any deal where the U.S. directly provides money to Iran.

"There have also been discussions around an investment fund for Iran that would provide billions of dollars for reconstruction once the two sides reach a final deal," sources said.

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