The recent high-stakes visit of a senior Iranian delegation to Doha, led by Parliament Speaker Mohammad Bagher Ghalibaf, has ended in a major diplomatic setback for Tehran, an informed source with knowledge of the negotiations told Iran International.
Despite Tehran’s firm demands for the immediate and unconditional release of $12 billion in cash upon the signing of an initial Memorandum of Understanding (MoU) with the United States, Qatari officials rejected the request, agreeing to release only half of the amount under strict limitations, the source said.
According to a source close to a Qatari official involved in the discussions, Doha refused to transfer the funds directly or in cash to Iran. Instead, the money will only be made available as credit for Tehran to purchase essential goods and products directly from Qatar.
The restriction comes amid strong US opposition to granting Iran direct, unrestricted access to liquid financial assets.
Washington raised concerns that direct cash injections would provide the Iranian government with vital economic breathing room, allowing it to pay delayed public salaries and procure military equipment or other goods from foreign countries during a time of intense regional strain.
Iran International previously reported that Tehran had set the unrestricted release of the $12 billion held in Qatar as a strict, non-negotiable precondition before it would advance any preliminary diplomatic understanding or sign the proposed framework agreement.
While Speaker Ghalibaf explicitly requested liquid financial assistance to ease Iran's severe domestic economic pressures, Qatar’s counteroffer effectively bars Iran from using the capital at its own discretion in a blow to Tehran’s strategy in US talks.
Rather than gaining direct access to the cash, Tehran is now forced to spend the capped credit line solely within the Qatari market for essential commodities.
To prevent the dispute from derailing the broader, highly sensitive framework talks with the United States, which aim to secure a regional ceasefire and reopen the strategic Strait of Hormuz, all participating parties have reportedly agreed to keep the details of this financial disagreement strictly confidential.
The rights group said more than 6,000 people had been arbitrarily arrested since the US-Israeli military attack on Iran began on February 28, including protesters, journalists, lawyers, rights defenders, dissidents and members of ethnic and religious minorities. It said authorities had carried out at least 39 political executions during the same period.
“Iranian authorities are exploiting the crisis to further erode the human rights of people in Iran,” said Erika Guevara Rosas, Amnesty’s senior director of research, policy, advocacy and campaigns.
Amnesty said Iran’s 88-day internet shutdown, which ended with restrictions on May 26, helped isolate more than 90 million people and obstruct documentation of abuses. It said authorities also criminalized efforts to bypass restrictions through VPNs or satellite internet, including Starlink, with warnings that some cases could fall under the Espionage Law, which carries the death penalty.
“To maintain their grip on power, the authorities have unleashed an all-out assault on people in Iran,” Guevara Rosas said.
The group said detainees had faced enforced disappearance, torture, forced confessions and denial of access to lawyers. It said documented abuses included mock executions, beatings, suspension from hands and feet, solitary confinement, and denial of food and medical care.
Amnesty called on Iranian authorities to release arbitrarily detained people, disclose the fate of those disappeared, lift remaining internet restrictions and halt executions.
“The international community must not allow the Iranian authorities to use the conflict as a smokescreen to deepen their machinery of repression,” Guevara Rosas said.
As an advocacy officer with the Iranian Students’ Association at Toronto Metropolitan University, he says many of his peers have no family in Canada and have been living under severe financial and emotional pressure for months.
“Over 99 percent of Iranian students are suffering from this issue – not just emotionally, but financially. Many no longer have access to the money their families send,” he said.
Crisis reaches Canada
According to the latest figures from Immigration, Refugees and Citizenship Canada, around 30,000 Iranian students live in Canada – young people who moved thousands of kilometers from their families in search of safety and stability.
But for many, the crisis is no longer confined to Iran. It has reached their classrooms, dormitories and daily lives in Canada.
Internet restrictions and blackouts in Iran, difficulties transferring money and growing economic pressure on families have left many Iranian students in Canada facing severe financial and psychological strain. Students say they have lost not only reliable access to family support, but in many cases regular contact with parents and loved ones for weeks or even months.
Kabiri says the problem now goes beyond emotional distress. Many international students are struggling to pay tuition and cover basic living expenses.
“Ontario’s laws are such that if you cannot pay your tuition, the university is allowed to expel you. Then there is the risk of having to return to Iran,” he said.
Fear of return
For some students, returning to Iran would not simply mean the end of their education. Many have taken part in anti-government rallies and protests in Toronto and fear they could face serious security consequences if forced back.
Shervin Akhlaghi, captain of the jiu-jitsu team at Toronto Metropolitan University, a member of the university’s Board of Governors and a member of the Iranian Students’ Association, says this has become one of the most urgent concerns among students in recent months.
“Many were active in the rallies. Their pictures have been published. If, for any reason, they cannot continue their education and are forced to return to Iran, God knows what will happen to them,” he said.
He says financial pressure has become so severe that some students are turning to university food banks to meet basic needs.
“Many students are now using emergency food services. The cost of living in Canada is very high, and many are not allowed to work more than a limited number of hours per week,” he said.
Mental health toll
Alongside the financial pressure, family separation, disrupted communication and uncertainty about the future are weighing heavily on students.
Sara Rahimi, a psychotherapist and author, says many Iranian students are experiencing severe anxiety, depression and helplessness.
“These kids feel like they are caught in the middle of a storm. They have no control over their future, nor are they sure they can finish their studies,” she said.
For many, Rahimi says, losing contact with family is not just a communication problem but a deep emotional rupture.
“It’s like the severing of an emotional umbilical cord for many of these students. They still need their family’s emotional support, and now that connection has suddenly been cut,” she said.
Rahimi also warns that prolonged stress, grief and anger could expose some students to risky behavior or social conflict, potentially jeopardizing their academic or professional future.
Limited support
Some Canadian universities have introduced limited measures, including tuition deferrals, flexible exam schedules, free counseling and emergency relief funds. But students say the support is inconsistent, limited in scope and unavailable at some institutions.
The Ontario government has also recently gained broader authority to intervene in university affairs under Bill 33, the Supporting Children and Students Act, 2025. That authority could potentially be used to mandate special financial or academic accommodations for students from crisis-affected countries.
So far, however, no specific plan or official policy has been announced for Iranian students.
Akhlaghi says student associations from several Ontario universities, including the University of Toronto, York University, Queen’s University and Toronto Metropolitan University, have tried to raise the issue with the provincial government, but the response has been disappointing.
Generic response
According to Akhlaghi, the response from Ontario’s Ministry of Colleges and Universities felt generic and impersonal.
“Our feeling was as if this answer was written by artificial intelligence, because they sent the exact same repetitive response to student associations and even the media,” he said.
In response to questions from Iran International, the ministry did not directly mention Iranian students, saying only that universities and colleges have introduced “measures and supports” for students affected by global crises and advising students to contact their institutions directly.
Student activists say the situation requires more than generic guidance. They say Iranian students are facing overlapping financial distress, mental health challenges, immigration anxiety and fear of return, and need urgent, targeted policies.
Those measures, they say, should include flexibility on tuition payments, emergency financial aid, specialized mental health support and immigration assurances for students who may face danger if returned to Iran.
Beyond the blackout
Although internet access has improved in some parts of Iran in recent days, many students say their difficulties will not disappear quickly.
The sharp decline in families’ financial capacity, continued disruption in money transfers and months of instability have left many students under sustained financial and psychological strain.
For many, this was never only about internet blackouts. It has become a crisis that calls into question their academic future, mental well-being and ability to remain in Canada.
