Tehran celebrates the liberation strike: What the Bürgenstock deal means for Iranian politics, economy and arms industry.
June 24, 2026, 8:15 a.mJune 24, 2026, 8:15 a.m
Michael Wrase, Limassol / ch media
Mural in Tehran: The Iranian regime’s support is growing after the Bürgenstock negotiations.Image: EPA
The joy over the negotiation results achieved at the Bürgenstock was written all over the face of the Iranian parliamentary speaker: On the flight from Zurich to Tehran, Mohammed Bagher Ghalibaf informed the media representatives traveling with him in detail about the release of frozen Iranian funds and the exemptions granted by the US Treasury Department. The Iranian chief negotiator repeatedly pointed out that there were no restrictions on the use of the released funds.
In fact, Iran has to use the first tranche of six billion dollars, which has so far been frozen in Qatar, for humanitarian goods such as food and medicine. The Qatari government would process purchases ordered by the Iranian central bank. “Wheat and soy can also come from the USA in the future, provided the prices are right,” said Iran’s central bank chief, who, like the head of the national oil company, was part of the Iranian negotiating delegation in Switzerland.
However, the Iranian regime can freely dispose of the second, previously released tranche of six billion US dollars as well as the proceeds from the sale of crude oil and petroleum products. Above all, the now unrestricted sale of crude oil and derivatives is of paramount importance for the regime: Because of the existing sanctions, the Islamic Republic has only been able to sell its crude oil at discounts of up to 40 percent in recent years. The sale, which is now possible at the full market price, means additional income of up to $20 billion a year for the Iranian state treasury, reported the Saudi television station Al Arabiya.
Feeling victorious: The Iranian delegation led by Foreign Minister Araghchi (3rd from right) and Parliament Speaker Ghalibaf (2nd from right) on the Bürgenstock.Image: keystone
In the last eight days alone, according to the maritime information service tankertrackers.com, more than 42 million barrels of Iranian crude oil left the Persian Gulf. The sales proceeds amount to around 3.4 billion dollars.
The defense industry is likely to benefit directly
However, the 300 billion US dollars that are to flow into a privately financed investment fund for the reconstruction of Iran after the conclusion of a final agreement are only on paper.
According to sources from the Reuters news agency, the Arab Gulf states as well as companies in South Korea, Malaysia, Japan, Singapore and Brazil have already made concrete commitments. The United Arab Emirates wanted to invest in the construction of a power plant, American Vice President JD Vance told journalists. Other investments will flow into logistics, healthcare, transport and industry.
More specific information has not yet been provided. However, Iranian government officials have made no secret of their intention to restore the steelworks near Isfahan and Ahwaz that were destroyed by Israel during the 40-day war as quickly as possible. The Iranian defense industry, which was hit particularly hard during the war, would also benefit from the steel produced.
Negotiated with Iran at Bürgenstock – US Vice President JD Vance.Image: keystone
Excluding the Iranian defense industry from the use of the funds and oil revenues now released would be practically impossible, emphasized a Western diplomat in Tehran in an interview with “Switzerland Today”. In the medium term, it can be expected that Iranian missile and drone production will also be ramped up again and that other defense companies will also be able to resume work.
Deal brings opponents and supporters together
Observers in the Iranian capital see the deal reached at Bürgenstock as “a liberating blow for the Iranian economy and politics”: The agreement led to a kind of “truce” between supporters and opponents of the agreement. The economic hardship after the war forced even the hardliners not to condemn the economic benefits of the deal, at least publicly, if not to grudgingly acknowledge it.
“Nobody would have been helped if our flight to Zurich had been prevented,” emphasized Ghalibaf on his return to Tehran. He was referring to a demand made by hardliners on state television to close Iranian airspace to “collaborators with the USA”. (schweiztoday.ch)