President Donald Trump says Iran’s unfrozen funds will be used to buy agricultural produce, including corn and soyabeans, from American farmers.

Mr Trump disclosed this at a press conference in the Oval Office on Monday, when he spoke about the ongoing peace deal between the U.S. and Iran.

“One of the things we are discussing is that the money that’s being unfrozen is going to be used to buy food exclusively through the United States from our farmers,” Mr Trump said. “The money will be used to buy corn and soybeans that they need from our farmers. So our farmers will make more money.”

Iran has about $12 billion frozen by the U.S. authorities. One of the highlights of the ongoing peace deal is that the fund will be unfrozen.

Before Mr Trump’s statement, Vice-President JD Vance, who is leading the U.S. delegation at the negotiations in Switzerland, had said, “The funds we release will come back to the United States in the form of food purchases.”

“If Iranian assets are ever unfrozen, they are going to make American farmers richer and help feed the Iranian people. That’s a very, very good, and very classic Trump deal,” he explained.

About $6 billion of the frozen $12 billion is expected to be released to Iranian authorities.

However, the Iranian government said it was not obligated to buy farm produce from the U.S.