$6 Billion of Iranian Funds Previously Seized in South Korea Transferred to Qatar, Facilitates U.S.-Iran Prisoner Exchange

Officials have confirmed that a scheduled prisoner exchange between Iran and the United States is set to proceed on Monday, facilitated by the transfer of approximately $6 billion in Iranian assets that were previously frozen in South Korea. These funds have now been moved to Qatar, serving as a pivotal factor in the impending exchange of detainees.

Nasser Kanaani, the spokesperson for the Iranian Foreign Ministry, was the first to publicly confirm that the exchange would transpire on Monday. He stated in a press briefing, later broadcast on state television, that the required funds for the exchange have been relocated to Qatar.

A source with direct knowledge of the transaction, who spoke to The Big Big News on condition of anonymity due to the ongoing nature of the negotiations, informed that Qatari authorities have notified both U.S. and Iranian officials about the successful transfer of the funds from Switzerland to Qatar.

During Kanaani’s press conference, the broadcast was abruptly terminated immediately following his statements, with no further explanation provided.

Earlier Analysis

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Kanaani had previously mentioned that portions of Iranian assets were frozen in various countries, including South Korea. He remarked, “Thanks to our proactive foreign policy, the seized assets in South Korea have now been liberated. Today, these assets will commence full control under the jurisdiction of the Iranian government and its people.”

Speaking on the topic of the prisoner exchange, Kanaani added, “The exchange will occur today, and five Iranian citizens will be released from U.S. custody. Correspondingly, five individuals who are incarcerated in Iran will be handed over to the United States. These processes are anticipated to proceed according to the established agreement.”

He also noted that two of the Iranian prisoners would continue to reside in the United States.

Shortly after the press conference, Iranian media outlets disseminated the news, attributing their information to Kanaani. No immediate response was received from Washington.

Weeks prior to this announcement, Iran had placed five Iranian-Americans under house arrest as a measure to build trust. Meanwhile, South Korea converted the previously frozen assets from South Korean won to euros, which were subsequently transferred to Qatar, a mediator in the U.S.-Iran discussions.

The exchange is taking place against the backdrop of a significant U.S. military escalation in the Persian Gulf. The U.S. is considering deploying troops to safeguard commercial vessels in the Strait of Hormuz, through which one-fifth of global oil shipments travel.

President Joe Biden has faced renewed scrutiny for potentially bolstering Iran’s economy at a time when the nation poses increasing security risks to U.S. troops and allies in the Middle East. These concerns could potentially impact his reelection campaign.

From the U.S., authorities have named three out of five prisoners included in the swap: Siamak Namazi, Emad Sharghi, and Morad Tahbaz. All three have been sentenced to 10 years imprisonment on charges widely criticized as unsubstantiated.

The sum ultimately transferred from South Korea to Qatar could range from $6 billion to $7 billion, contingent on fluctuating exchange rates. The United States asserts that the funds will be placed in restricted accounts in Qatar, solely for the purchase of humanitarian goods, as is currently permitted under U.S. sanctions aimed at Iran’s nuclear activities.

Iranian officials largely concur with the U.S. stance, although some hard-liners in Iran have contended, without providing evidence, that there will be no limitations on Tehran’s expenditure of these funds.

U.S.-Iran prisoner exchanges have a historical precedent dating back to the 1979 U.S. embassy takeover in Tehran. The latest significant exchange took place in 2016 when Iran agreed to curb its nuclear activities in return for easing sanctions.

Despite Iran’s controversial practice of targeting dual nationals, and despite tensions escalating following U.S. withdrawal from the nuclear agreement in 2018, this latest development could mark a turning point in Iran-U.S. relations.

Iran continues to be a focal point of geopolitical tensions, not only due to its nuclear activities but also because of its military support to Russia, including the supply of bomb-carrying drones used in Ukraine.

Contributor Nasser Karimi in Tehran, Iran, added to this report.

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• Tensions in the Strait of Hormuz and its Importance in Global Oil Shipments