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US and Iran to swap detainees after $6 billion unfrozen

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A Qatari plane waited in Iran on Monday to fly out five U.S. detainees in a swap for five Iranians held in the United States, thanks to a Doha-mediated deal that has also unfrozen $6 billion of Iranian funds.

Iran and the United States were told the funds had been transferred to accounts in Qatar, a source briefed on the matter told Reuters. That triggered an exchange sequence agreed after months of talks between the arch foes, who are at odds over Tehran’s nuclear ambitions and a host of other issues.

“A Qatari aircraft is on standby in Iran waiting to fly five soon-to-be released U.S. citizens and two relatives to Doha on Monday morning,” the source said.

Iran’s Foreign Ministry spokesperson Nasser Kanaani said the funds, blocked in South Korea after U.S. sanctions on Iran were hardened in 2018, would be available to Tehran on Monday. Under the deal, Qatar will ensure it is spent on humanitarian goods, Reuters reported.

There was no immediate public U.S. comment.

The five Americans with dual nationality are expected to fly on from Doha to the United States. In return, five Iranians detained in the U.S. will be released.

The Iranian Foreign ministry spokesperson said two Iranians would return to Iran while two would stay in the U.S. at their request. One detainee would join his family in a third country, he added.

The deal will remove a major irritant between the U.S., which brands Tehran a state sponsor of terrorism, and Iran, which calls Washington the “Great Satan”.

But they remain deeply divided on other issues ranging from Iran’s nuclear programme and its influence around the region to U.S. sanctions and America’s military presence in the Gulf.

Qatar, a tiny but hugely wealthy Gulf Arab energy producer, has sought to raise its global profile, hosting the soccer World Cup last year and carving out a role in international diplomacy. The Sunni Muslim nation hosts a big U.S. military base but has also forged close ties with Shi’ite Muslim Iran.

Doha hosted at least eight rounds of talks with Iranian and U.S. negotiators sitting in separate hotels, speaking via shuttle diplomacy, a source previously told Reuters.

Qatar’s monitoring role

Under the agreement, Doha agreed to monitor how Iran spends the unfrozen funds to ensure the cash is spent on humanitarian goods, such as food and medicine, and not any items under U.S. sanctions.

The transfer of Iran’s funds has drawn criticism from U.S. Republicans who say Biden, a Democrat, is in effect paying a ransom for U.S. citizens. The White House has defended the deal.

The U.S. dual citizens to be released include Siamak Namazi, 51, and Emad Sharqi, 59, both businessmen, and Morad Tahbaz, 67, an environmentalist who also holds British nationality. They were released from prison and put under house arrest last month, Reuters reported.

A fourth U.S. citizen was also released into house arrest, while a fifth was already under house arrest. Their identities have not been disclosed.

Iranian officials have named the five Iranians to be released by the U.S. as Mehrdad Moin-Ansari, Kambiz Attar-Kashani, Reza Sarhangpour-Kafrani, Amin Hassanzadeh and Kaveh Afrasiabi. Two Iranian officials previously said that Afrasiabi would remain in the United States but had not mentioned others.

Ties between Washington and Tehran have been boiling since Donald Trump, a Republican, pulled the U.S. out of a nuclear deal between Iran and global powers when he was president in 2018. Reaching another nuclear deal has gained little traction since, as President Joe Biden prepares for the 2024 U.S. election.

As a first step in the deal, Washington waived sanctions to allow the transfer of $6 billion in Iranian funds from South Korea to Qatar. The funds were blocked in South Korea, normally one of Iran’s largest oil customers, when Washington imposed sweeping financial sanctions on Tehran and the cash could not be transferred.

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Trump backs down on strikes on Iran’s power network, says US and Tehran holding talks

Iranian attacks have effectively closed the Strait, which ​carries a ⁠fifth of global oil and liquefied natural gas.

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President Donald Trump backed down on targeting Iran’s power network on Monday, saying the U.S. and ​Iran have held constructive talks and that he would ‌postpone any strikes on power plants and energy infrastructure, Reuters reported.

Trump’s statement came after Iran threatened to attack Israel’s power plants and those supplying U.S. bases ​across the Gulf region if the U.S. targets Iran’s ​power network.

The dollar plunged and ​stocks surged following Trump’s post.

The United States and Iran “have had, over ​the last two days, very good and productive conversations regarding a complete and total resolution of our hostilities in the Middle East,” Trump wrote ​in a post on Truth Social.

“I have instructed the Department ​of War to postpone any and all military strikes against Iranian power plants ‌and ⁠energy infrastructure for a five-day period, subject to the success of the ongoing meetings and discussions.”

On Saturday, Trump warned that Iranian power plants would be destroyed if Tehran failed to “fully open” ​the Strait of ​Hormuz to ⁠all shipping within 48 hours. Trump set a deadline of around 7:44 p.m. EDT (2344 GMT) on ​Monday.

Iranian attacks have effectively closed the Strait, which ​carries a ⁠fifth of global oil and liquefied natural gas, read the report.

More than 2,000 people have been killed in the war the U.S. and Israel ⁠launched ​on February 28, which has upended markets, ​driven up fuel costs, fuelled global inflation fears and convulsed the postwar Western ​alliance.

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Iran says coastal attack will lead to full Gulf closure and mine-laying

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An attack on Iran’s southern coast and islands will lead to ​Gulf routes being cut with the ‌laying of sea mines, the country’s Defence Council said on Monday according to state media, Reuters reported.

The ​U.S. is considering plans to occupy, opens new tab or ​blockade Iran’s Kharg Island, the country’s main ⁠oil export hub, to pressure Tehran ​to reopen the Strait of Hormuz to ​all shipping, according to Axios.

“Any attempt to attack Iran’s coasts or islands will cause all access routes ​in the Gulf (…) to be mined ​with various types of sea mines, including floating ‌mines ⁠that can be released from the coast,” the statement read.

“In this case, the entire Gulf will practically be in a situation ​similar to ​the ⁠Strait of Hormuz for a long time (…) One should not forget ​the failure of more than ​100 ⁠minesweepers in the 1980s in removing a few sea mines.”

The Defence Council recalled that ⁠non-belligerent ​states can only pass through ​the Strait of Hormuz by coordinating passage with Iran.

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Iran says Hormuz open to all but ‘enemy-linked’ ships

The threat of Iranian attacks during the U.S.-Israeli war on Iran has kept most ships from getting through the narrow strait, the conduit for around a fifth of global oil and liquefied natural gas supplies, threatening a global energy shock.

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The Strait of Hormuz remains open to all shipping except vessels linked to “Iran’s enemies”, Iranian media reports published on Sunday quoted Iran’s representative to the U.N. maritime agency as saying.

Ali Mousavi’s comments came from an interview published on Friday by Chinese news agency Xinhua, before U.S. President Donald Trump’s threat to target ⁠Iranian power plants if the strait was not “fully open” within 48 hours.

The threat of Iranian attacks during the U.S.-Israeli war on Iran has kept most ships from getting through the narrow strait, the conduit for around a fifth of global oil and liquefied natural gas supplies, threatening a global energy shock.

Mousavi, who is also Iran’s ambassador to the ⁠UK, was also quoted as saying that Tehran would continue to cooperate with the International Maritime Organisation (IMO) to improve maritime safety and protect seafarers in the Gulf, adding that ships ⁠not belonging to “Iran’s enemies” could pass the strait by coordinating security and safety arrangements with Tehran.

“Diplomacy remains Iran’s priority. However, a complete ⁠cessation of aggression as well as mutual trust and confidence are more important,” Mousavi said, adding that Israeli ⁠and U.S. attacks against Iran were at the “root of the current situation in the Strait of Hormuz”.

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