U.S. advances deal with Iran to swap prisoners, free frozen oil funds

Washington Post

The Biden administration has issued a waiver for banks to transfer $6 billion in frozen Iranian oil funds without fear of U.S. Sanctions — a key step in securing the release of five American citizens detained in Iran, people familiar with the matter said. As a part of the arrangement, the administration will release five Iranian citizens detained in the United States.

Congress was notified of the move on Monday, and it’s likely to come as a relief to U.S. prisoners’ families and supporters, many of whom have waited several years for the return of the detainees. It also is expected to come under harsh criticism from Republicans in Congress opposed to any agreement that allows for the release of frozen Iranian funds, money that is being transferred from South Korea to Qatar and limited for the purchase of humanitarian goods like food or medicine.

The deal marks a major breakthrough for the longtime adversaries who remain at loggerheads over a range of issues, including the rapid expansion of Tehran’s nuclear program, its ongoing military support for Russia and Iran’s harsh crackdown on dissent. Though it remains unclear when the two sides could complete the prisoner transfer, Monday’s announcement comes as President Biden and Iranian President Ebrahim Raisi each prepare to travel to New York for the annual U.N. General Assembly next week.

Amid the prisoner release talks, the United States and Iran have been discussing a possible informal arrangement that would seek to place some limitations on Iran’s nuclear program and avoid an international crisis. U.S. officials have insisted, however, that those talks are unrelated to the prisoner-exchange negotiations.

Who are the U.S. citizens being held in Iran?

The U.S. prisoners held by Iran include Siamak Namazi, an Iranian American who had been behind bars in Tehran for nearly eight years, the longest duration the Islamic republic has jailed any American. Others include Morad Tahbaz, an Iranian American who also holds British citizenship, and Emad Shargi, an American Iranian dual citizen. Each was released from Iran’s notorious Evin Prison last month in an initial step of the deal.

Two other American detainees involved in the swap have not been named at the request of their families.

While the five American detainees remain in Iran, the waiver decision, first reported by the Associated Press, tees up the prisoners’ full release, which could happen as early as next week amid the high-profile U.N. gathering, according to people familiar with the matter. They spoke on the condition of anonymity to discuss sensitive details.

South Korea, one of Iran’s largest oil customers, has held $6 billion in Iranian funds as a result of a waiver issued by the Trump administration in 2018 that allowed Seoul to continue purchasing Iran’s oil. Those funds became stuck in 2019 when the Trump administration tightened sanctions on Iran.