US authorized the release of USD6 bln in frozen Iranian funds, with Qatari and South Korean representatives said to be arranging the transfer within days - X

The U.S. government has authorized the release of $6 billion in frozen Iranian funds, facilitating a prisoner exchange deal between the United States and Iran. The funds, previously held in South Korea, have been transferred to Qatar under a sanctions waiver issued by the U.S. Department of State. Secretary of State Antony Blinken stated that the funds would be used exclusively for humanitarian trade and would not provide significant economic benefit to Iran.

The transfer was made possible through a waiver that shields participating banks from U.S. sanctions, allowing the movement of funds from South Korea to Qatar's central bank. South Korea's foreign ministry confirmed the successful transfer of the funds to a third country. The U.S. has also agreed to release five Iranian nationals detained in the United States as part of the exchange.

The deal has drawn criticism from some U.S. lawmakers, who argue that the transfer could incentivize future hostage-taking by Iran. However, the Biden administration maintains that the funds will be closely monitored by Qatar to ensure they are used solely for humanitarian purposes.

The prisoner swap, mediated by Qatar, is expected to see the release of five American-Iranian dual nationals, including Siamak Namazi, Emad Sharghi, and Morad Tahbaz, who were previously held in Evin prison in Tehran. The U.S. dual nationals are anticipated to be flown to Doha, Qatar, before traveling to the United States.