Trump halts planned attack on Iran at the request of Arab countries

The United States has agreed to release a quarter of Iran's frozen funds, totaling tens of billions of dollars, deposited in foreign banks, and Iran wants to release all assets, an Iranian source  said.

The Iranian source told Tasnim News Agency that Washington has shown greater flexibility in allowing Iran to continue some peaceful nuclear activity under the supervision of the International Atomic Energy Agency (IAEA).

The source continued: The United States has agreed to lift oil sanctions on Iran during the continuation of negotiations.

Key Points for the Release of Iranian Funds

US reports stated that the released funds were oil revenues that had accumulated in foreign banks such as South Korea, Iraq, and Japan , explaining that these funds do not return directly to Iran in cash, but are transferred to bank accounts under the supervision of central banks in intermediary countries such as Qatar or Oman through the financial control system.

The sources indicated that these amounts will be used within specific exchange channels exclusively for the purchase of humanitarian goods such as medicines, foodstuffs and medical equipment, as part of a system that ensures that they are not diverted for any other purposes.

  The United States emphasizes  strict oversight to ensure that these funds are not used for military or weapons activities, while countries such as Qatar, Oman and Switzerland play the role of mediator who facilitates procedures and ensures compliance with agreed terms, making the entire process part of careful financial and political arrangements managed under direct international supervision.

Trump halts 'Tuesday attack'

U.S. President Donald Trump said Monday that he had ordered a halt to a military attack on Iran, which was scheduled for Tuesday, adding that he had instructed the military to prepare for a full-scale attack on Iran at any moment if an acceptable deal was not reached.

Qatar, Saudi Arabia and the United Arab Emirates have asked the Trump administration to postpone the planned military attack on Iran, he said.

Iranian source: Ensuring the end of the war first

This comes hours after  a Pakistani source  said that Islamabad had sent Washington a modified Iranian proposal to end the war, while noting that the differences between the two sides remain significant.

The source added in a statement to Reuters on Monday, May 18, 2026, that time is "narrowing" for the possibility of reaching an understanding, as the two parties continue to change their terms, as he put it.

The Iranian proposal, as described by a senior Iranian source, to Tasnim News Agency appeared similar in many respects to Iran's previous offer, which U.S. President Donald Trump said last week was "nonsense."

The source said that the Iranian proposal will first focus on ensuring an end to the war, the reopening of the Strait of Hormuz, and the lifting of maritime sanctions, explaining that the most contentious issues regarding Iran's nuclear program and uranium enrichment will be postponed to later rounds of talks.

Iran: Our negotiations continue

Iranian Foreign Ministry spokesman Esmail Baghaei also confirmed that indirect negotiations between Tehran and Washington are still ongoing through the Pakistani mediator, despite the escalating tensions in the region.

Baghaei's remarks came during his weekly press conference in Tehran, where he stressed that his country "is not hostile to any country in the region," but called on neighboring countries, especially the United Arab Emirates, to "draw lessons from recent events," referring to the attacks on the UAE and other Arab countries as part of what Tehran described as a military response to the operations launched on them by Tel Aviv and Washington since February 28.

The Iranian official revealed that he is in constant contact with the Sultanate of Oman to set up a regulatory mechanism in the Strait of Hormuz, stressing that his country is making efforts to ensure the security of navigation in the vital corridor and that the US and Israeli presence in the region "does not achieve security for any party".

Baghaei said Iran "will not abandon its interests under economic pressure and threats," adding that the United States is "well aware of this."