US Approves Release of Iranian Funds for Detainees

• Americans under house arrest until funds move to Qatar.
• Blinken signs waiver to protect banks from US sanctions.
• Transfer seen as crucial for detainee release.

The United States has officially approved the release of $6 billion in frozen Iranian assets held in South Korea, facilitating the departure of five US citizens from Tehran.

Following extensive negotiations, the US and Iran reached an agreement last month to free the American citizens from prison, placing them under house arrest with the expectation that they would leave Iran once the funds were transferred to an account in Qatar.

Secretary of State Antony Blinken has informed Congress of his endorsement of a crucial element of the deal, signing a waiver that shields the banks involved in the asset transfer from US sanctions.

A spokesperson from the State Department emphasized the significance of this money transfer, describing it as a “critical step” in securing the release of the five US citizens.

The Biden administration has clarified that the funds can only be used by Iran to purchase essential items like food, medicine, and humanitarian goods, a point contested by Iran.

In Tehran, the foreign ministry spokesman expressed optimism that the prisoner exchange would occur soon, noting that five Iranians were also expected to be released from the United States.

The five American detainees had been held in Iran for up to eight years, and all of them are of Iranian descent, although Tehran does not recognize dual nationality.

The frozen $6 billion originated from Iran’s oil sales to South Korea, a close US ally. These funds were frozen when former President Donald Trump reimposed sanctions and withdrew from the nuclear accord.

Despite the asset transfer, the State Department reiterated that no money was going directly to Iran, and no taxpayer funds were involved. The Biden administration had initially hoped to revive the 2015 nuclear agreement with Iran but faced challenges, especially regarding Iranian demands for a comprehensive lifting of sanctions unrelated to the nuclear program.

The release of both funds and prisoners coincides with the anniversary of a significant event in Iran, and it occurs while President Biden and Iran’s new hardline leader, Ebrahim Raisi, are attending the UN General Assembly, although no direct meeting between them is expected.

Biden’s political opponents have criticized the move, characterizing it as a “ransom payment” and suggesting it could incentivize hostage-taking by America’s adversaries. Representative Mike McCaul, a Republican, expressed concern about the perceived weakness displayed by the administration.

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