Iran transfers 5 Iranian-Americans from prison to house arrest in step toward deal for full release

DUBAI, United Arab Emirates (AP) — Iran has moved five IranianAmericans from prison to house arrest in exchange for billions of dollars frozen in South Korea, U.S. and Iranian officials said Thursday, as part of a tentative deal that follows months of heightened tensions between the two countries.

Iranian officials at the United Nations told The Associated Press that the prisoner transfer marked “a significant initial step” in the implementation of the agreement, which is still being negotiated and could eventually lead to the full release of the Americans.

Iran acknowledged that the deal involves $6 billion to $7 billion that were frozen as a result of sanctions. Iranian officials said the money would be transferred to Qatar before being sent on to Iran if the agreement goes through.

The final transfer of the money — and the release of the five detainees — is expected in the next month or so due to the complicated nature of the financial transactions, officials said.

“My belief is that this is the beginning of the end of their nightmare and the nightmare that their families have experienced,” Secretary of State Antony Blinken told a news conference in Washington, adding that more work would be necessary to free the five.

State Department officials spoke to the prisoners on Thursday, he said.

The deal unfolded amid a major American military buildup in the Persian Gulf, with the possibility of U.S. troops boarding and guarding commercial ships in the Strait of Hormuz, through which 20% of all oil shipments pass.

The agreement is bound to open U.S. President Joe Biden to fresh criticism from Republicans and others that his administration is helping to boost the Iranian economy at a time when Iran poses a growing threat to U.S. troops and Mideast allies.

U.S.-based lawyer Jared Genser, who represents one of the prisoners, said the five will likely be held at a hotel under guard. There are “simply no guarantees about what happens from here,” he said.

Neda Sharghi, whose brother, Emad Sharghi, is among the prisoners, said in a statement that her family “has faith in the work that President Biden and government officials have undertaken to bring our families home.”

Adrienne Watson, a spokesperson for the White House’s National Security Council, described the negotiations for the release as “ongoing” and delicate.”

“While this is an encouraging step, these U.S. citizens ... should have never been detained in the first place,” she said in a statement.

It remains unclear how many Iranian-Americans are held by Tehran, which does not recognize dual citizenship.

The prisoners include Siamak Namazi, who was detained in 2015 and was later sentenced to 10 years in prison on internationally criticized spying charges; 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.

Iran, meanwhile, has said it seeks the release of Iranian prisoners held in the U.S.

American officials declined to comment on who or how many Iranian prisoners might be released in a final agreement. But Iranian media in the past identified several prisoners with cases tied to violations of U.S. export laws and restrictions on doing business with Iran.

The alleged violations include the transfer of money through Venezuela and sales of dual-use equipment that the U.S. alleges could be used in Iran’s military and nuclear programs. Iran has been enriching uranium and stockpiling it as part of its advancing nuclear program.

The deal hinges on the frozen assets in South Korea. In the dispute over the money, Tehran seized a South Korean oil tanker and threatened further retaliation this month.