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US allows $6 billion transfer as part of Iran prisoner swap
The United States waived sanctions to allow the transfer of $6 billion in Iranian funds from South Korea to Qatar, a step needed to carry out a previously announced U.S.-Iran prisoner swap, according to a U.S. document seen by Reuters on Monday.
The broad outlines of the U.S.-Iran deal under which five U.S. citizens detained by Iran would be allowed to leave in exchange for the transfer of the funds and the release of five Iranians held in the United States were made public on Aug. 10.
According to the State Department document seen by Reuters, Secretary of State Antony Blinken determined that waiving the sanctions was in the national security interests of the United States.
The document sent to U.S. congressional committees marks the first time the U.S. government has formally acknowledged it is releasing five Iranians detained in the United States as part of the agreement to secure the freedom of the five U.S. citizens, read the report.
“To facilitate their release, the United State has committed to release five Iranian nationals currently detained in the United States and to permit the transfer of approximately $6 billion in Iranian funds held in restricted accounts in the (Republic of Korea) to restricted accounts in Qatar, where the funds will be available only for humanitarian trade,” it said.
The document said the transfer of funds would only provide “limited benefit to Iran” since the funds can only be used for humanitarian trade.
“Allowing these funds to be transferred from restricted Iranian accounts held in the (Republic of Korea) to accounts in Qatar for humanitarian trade is necessary to facilitate the release of these U.S. citizens,” the document said.
White House spokesperson Adrienne Watson said in a statement late on Monday that Blinken, on Sept. 8, had undertaken “a procedural step in an ongoing process to ensure Iranian funds can move from one restricted account to another and remain restricted to humanitarian trade.”
She said the administration had kept Congress informed from the start of the process.
“As we have said from the outset, what is being pursued here is an arrangement wherein we secure the release of 5 wrongfully held Americans. This remains a sensitive and ongoing process,” she said. “While this is a step in the process, no individuals have been or will be released into U.S. custody this week.”
The transfer of the $6 billion and the prisoner exchange could take place as early as next week, according to eight Iranian and other sources familiar with the negotiations, read the report.
The waiver applies to certain financial institutions that fall under the primary jurisdiction of Germany, Ireland, Qatar, South Korea and Switzerland to engage in transactions with the National Iranian Oil Company, the Central Bank of Iran and other Iranian financial institutions under U.S. sanctions, it added.
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UAE countering Iranian air attack after Trump says ceasefire still in effect
U.S. ally the United Arab Emirates said its air defences were engaging missile and drone threats from Iran early on Friday in a further test of the shaky, month-long ceasefire between the U.S. and Iran.
There were few details immediately available about the latest attack on the UAE, which came a day after the U.S. and Iran exchanged fire around the Strait of Hormuz, and as Washington awaited a response from Tehran to its proposal to end the conflict. Iran has often targeted the UAE and other Gulf countries that host U.S. bases since the war began on February 28, Reuters reported.
President Donald Trump said on Thursday three U.S. Navy destroyers were attacked as they moved through the strait, a conduit for around a fifth of the world’s oil and liquefied natural gas flows that Iran has all but closed since the conflict started.
“Three World Class American Destroyers just transited, very successfully, out of the Strait of Hormuz, under fire. There was no damage done to the three Destroyers, but great damage done to the Iranian attackers,” Trump wrote on Truth Social.
Trump later told reporters the ceasefire was still in effect and sought to play down the exchange.
“They trifled with us today. We blew them away,” Trump said in Washington.
Iran’s top joint military command accused the U.S. of violating the ceasefire by targeting an Iranian oil tanker and another ship, and of carrying out air attacks on civilian areas on Qeshm Island in the Strait of Hormuz and the nearby coastal areas of Bandar Khamir and Sirik on the mainland. The military said it responded by attacking U.S. military vessels east of the strait and south of the port of Chabahar.
A spokesperson for Iran’s Khatam al-Anbiya Central Headquarters said the Iranian strikes inflicted “significant damage,” but U.S. Central Command said none of its assets were hit.
Iran’s Press TV later reported that, following several hours of fire, “the situation on Iranian islands and coastal cities by the Strait of Hormuz is back to normal now.”
The two sides have occasionally exchanged gunfire since the ceasefire took effect on April 7, with Iran hitting targets in Gulf countries including the UAE.
Oil prices rose in early trade in Asia on Friday, with Brent crude jumping above $100 a barrel after the latest clashes between the U.S. and Iran.
TRUMP URGES NEGOTIATED END TO WAR
Trump suggested ongoing talks with Tehran remained on track despite Thursday’s hostilities, telling reporters, “We’re negotiating with the Iranians.”
Before the latest strikes, the U.S. had floated a proposal that would formally end the conflict but did not address key U.S. demands that Iran suspend its nuclear work and reopen the strait.
Tehran said it had not yet reached a decision on the emerging plan.
Even so, Trump said Tehran had acknowledged his demand that Iran could never get a nuclear weapon, a prohibition he said was spelled out in the U.S. proposal.
“There’s zero chance. And they know that, and they’ve agreed to that. Let’s see if they are willing to sign it,” Trump said.
Asked when any deal might be reached, Trump said, “It might not happen, but it could happen any day. I believe they want to deal more than I do.”
The war has tested Trump’s relationship with his U.S. base of supporters, after he had campaigned against involving the United States in foreign wars and promised to bring down fuel prices.
Average U.S. gasoline prices have climbed more than 40% since late February, rising by about $1.20 a gallon to more than $4, according to data from the American Automobile Association, as disruptions to oil shipments through the Strait of Hormuz pushed crude oil prices higher.
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US and Iran closing in on one-page memo to end war, Axios reports
The U.S. State Department and White House did not immediately respond to a request for comment.
The White House believes it is getting close to an agreement with Iran on a one-page memorandum of understanding to end the war and set a framework for more detailed nuclear negotiations, Axios reported on Wednesday, citing two U.S. officials and two other sources briefed on the issue.
The U.S. expects Iranian responses on several key points in the next 48 hours, according to the report which cautioned that nothing has been agreed yet but said this was the closest the parties had been to an agreement since the war began, Reuters reported.
Among other provisions, the deal would involve Iran committing to a moratorium on nuclear enrichment, the U.S. agreeing to lift its sanctions and release billions in frozen Iranian funds, and both sides lifting restrictions around transit through the Strait of Hormuz, Axios said.
The one-page, 14-point memorandum of understanding is being negotiated between U.S. envoys Steve Witkoff and Jared Kushner and several Iranian officials, both directly and through mediators, the report said.
In its current form, the memorandum would declare an end to the war in the region and the start of a 30-day period of negotiations on a detailed agreement to open the strait, limit Iran’s nuclear programme and lift U.S. sanctions, Axios added.
Iran’s restrictions on shipping through the strait and the U.S. naval blockade would be gradually lifted during that 30-day period, Axios said, citing one U.S. official who added that if the negotiations collapse, U.S. forces would be able to restore the blockade or resume military action, read the report.
Iran said earlier on Wednesday it would accept a peace deal only if it was “fair”, after U.S. President Donald Trump paused a three-day-old naval mission tasked with reopening the Strait of Hormuz that had shaken the war’s month-old ceasefire.
Reuters could not immediately verify the report. The U.S. State Department and White House did not immediately respond to a request for comment.
U.S. stock index futures extended gains following the Axios report.
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Iran foreign minister meets Chinese counterpart for first time since Iran war started
U.S. Treasury Secretary Scott Bessent urged China to intensify its diplomatic efforts to persuade Iran to open the Strait of Hormuz to international shipping.
Iranian Foreign Minister Abbas Araqchi met China’s top diplomat in Beijing on Wednesday, underscoring close ties between the two countries shortly before U.S. President Donald Trump is scheduled to travel to meet with Xi Jinping, Reuters reported.
Araqchi’s visit, announced by state news agency Xinhua, is his first trip to China since the U.S.-Israeli war on Iran set off the most severe global oil supply shock in history and undermined the energy security of China, the world’s top crude importer.
Earlier this week, U.S. Treasury Secretary Scott Bessent urged China to intensify its diplomatic efforts to persuade Iran to open the Strait of Hormuz to international shipping.
Bessent said Trump and Xi would exchange views on Iran in person during their May 14 to 15 talks in Beijing. But he emphasized the two will seek to keep the steady U.S.-China relationship on track following a trade truce in October.
He urged China to “join us in this international operation” to open the strait, but did not specify what actions Beijing should take. He added that China and Russia should stop blocking initiatives at the United Nations, including a resolution encouraging steps to protect commercial shipping in the strait.
Earlier this week, the U.S. and Iran launched new attacks in the Gulf as they wrestled for control over the strait with duelling maritime blockades, threatening what was already a fragile truce.
Trump later said the U.S. Navy would help ships pass through the strait. But that operation was paused after Trump on Tuesday said there had been “great progress” made toward a comprehensive agreement with Iran.
There was no immediate reaction from Tehran, read the report.
The Iranian foreign minister on Monday said the attacks, taking place after he said Tehran was looking into Trump’s request for negotiations, showed there was no military solution to the crisis.
China has engaged in a flurry of diplomatic activity and refrained from forceful criticism of the U.S.’ conduct of the war so that the summit, already postponed once by the conflict, can go smoothly, analysts have told Reuters.
China has repeatedly urged the U.S. and Iran to maintain the ceasefire and lift the restrictions in the strait. Trump has also credited Beijing with helping to get Iran to attend last month’s peace talks in Pakistan.
Last week, China escalated its opposition to U.S. sanctions against Chinese oil refineries over purchases of Iranian crude. Its Ministry of Commerce ordered companies not to comply with U.S. sanctions against five independent refiners, including the recently designated Hengli Petrochemical, invoking for the first time a law that allows Beijing to retaliate against entities enforcing sanctions that it deems unlawful, Reuters reported.
China buys more than 80% of Iran’s shipped oil, data for 2025 from analytics firm Kpler showed. Iranian oil has had limited buyers due to U.S. sanctions that are aimed at cutting off funding to Tehran’s nuclear programme.
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