U.S. clears Iran prisoner swap deal that will release US$6B in frozen funds

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U.S. clears Iran prisoner swap deal that will release US$6B in frozen funds
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The waiver came a month after U.S. and Iranian officials said an agreement was in place and marked the first time the administration said it was releasing five Iranian prisoners.

by issuing a blanket waiver for international banks to transfer US$6 billion in frozen Iranian money from South Korea to Qatar without fear of U.S. sanctions. In addition, as part of the deal, the administration has agreed to release five Iranian citizens held in the United States.

The outlines of the deal had been previously announced and the waiver was expected. But the notification marked the first time the administration said it was releasing five Iranian prisoners as part of the deal. The prisoners have not been named.The waiver is likely to draw criticism of President Joe Biden from Republicans and others that the deal will boost the Iranian economy at a time when Iran poses a growing threat to U.S. troops and Mideast allies.

Due to numerous U.S. sanctions on foreign banks that engage in transactions aimed at benefitting Iran, several European countries had balked at participating in the transfer. Blinken’s waiver is aimed at easing their concerns about any risk of U.S. sanctions.People familiar with negotiations said they expect the detainees will be released as early as next week.

“To facilitate their release, the United States has committed to release five Iranian nationals currently held in the United States and to permit the transfer of approximately $6 billion in restricted Iranian funds held in to restricted accounts in Qatar, where the funds will be available only for humanitarian trade,” Blinken wrote.

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