The Biden administration has struck a deal with Iran to swap prisoners and release $6 billion in frozen Iranian funds.
Per the deal, Iran will release five American citizens detained in Iran and the U.S. release five Iranian citizens being held in the U.S. The deal creates a blanket waiver to transfer $6 billion in frozen Iranian money from South Korea to Qatar without fear of violating U.S. sanctions. No money is going directly to Iran and no U.S. taxpayer funds are being used. The United States classifies Iran as a state sponsor of terrorism.
Secretary of State Antony Blinken signed off on the deal late last week, but Congress was not notified of the decision until Monday, the 22nd anniversary of the 9/11 terrorist attacks, according to the notification, which was obtained by The Associated Press.The transfer of the $6 billion was the critical element in the prisoner release deal, which saw four of the five American detainees transferred from Iranian jails into house arrest last month. The fifth detainee had already been under house arrest.
Due to numerous U.S. sanctions on foreign banks that engage in transactions aimed at benefiting 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.
National Security Council Spokesperson Adrienne Watson said Secretary Blinken undertook a procedural step last week "to ensure Iranian funds could move from one restricted account to another and remain restricted to humanitarian trade."
"As we have said from the outset, what is being pursued here is an arrangement wherein we secure the release of 5 wrongfully held Americans. This remains a sensitive and ongoing process," Watson said.
