Foreign Minister Fuad Hussein has called on the US to quickly resolve the issue of Iran's frozen funds in Iraq, the Iraqi News Agency (INA) reported on Friday.

Hussein emphasized to US Acting Under Secretary for Political Affairs John Bass the necessity of "a quick and fair solution that serves the interests of both parties and enhances financial stability in the region," according to a statement from the Iraqi Foreign Ministry.

In contrast, a senior Iranian official stated in May that Tehran has no blocked funds in Iraq, following sanction waivers issued by the US in 2023. These waivers allowed Baghdad to release funds owed to Iran for exports of natural gas and electricity.

Despite Iraq's debt to Iran, US banking sanctions imposed on Tehran in 2018 had previously prevented Baghdad from making payments. The Trump and Biden administrations have routinely renewed Iraq’s waivers to import energy from Iran. However, allowing Baghdad to make payments in hard currency is a recent development introduced by the Biden administration last year, which has faced backlash from US lawmakers.

The Biden administration has stipulated that the funds, held in euros in Oman, can only be used for humanitarian purposes under the terms of the waiver.