WASHINGTON — The Biden administration has cleared the way for the release of five American citizens detained in Iran by issuing a blanket waiver for international banks to transfer $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.
Secretary of State Antony Blinken signed off on the sanctions waivers late last week, a month after U.S. and Iranian officials said an agreement in principle was in place. Congress was not informed of the waiver decision until Monday, according to the notification, which was obtained by The Associated Press.
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 waiver drew criticism of President Joe Biden from Republicans and others who say the deal will boost the Iranian economy at a time when Iran poses a growing threat to U.S. troops and Mideast allies.
On X, the platform formerly known as Twitter, Sen. Chuck Grassley of Iowa said “it’s ridiculous for US to be blackmailed into paying $6B for hostages which will help indirectly finance the number 1 foreign policy of Iran: terrorism.” Sen. Tom Cotton of Arkansas accused Biden of “paying ransom to the world’s worst state sponsor of terrorism.”
The waiver means that European, Middle Eastern and Asian banks will not run afoul of U.S. sanctions in converting the money frozen in South Korea and transferring it to Qatar’s central bank, where it will be held for Iran to use for the purchase of humanitarian goods.
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.
People familiar with negotiations said they expect the detainees will be released as early as next week.
The American prisoners include Siamak Namazi, who was detained in 2015 and was later sentenced to 10 years in prison on internationally criticized spying charges; Emad Sharghi, a venture capitalist sentenced to 10 years; and Morad Tahbaz, a British-American conservationist of Iranian descent who was arrested in 2018 and also received a 10-year sentence. The fourth and fifth prisoners were not identified.