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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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Iran defends two-day proposal for peace talks after US rejects conditions

Iran defended a proposal on Monday to restart peace talks in as ​few as two days as the ‌most reasonable offer on the table, after US Secretary of State Marco Rubio called some of ​Iran’s conditions “outrageous and ridiculous”.

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Iran defended a proposal on Monday to restart peace talks in as ​few as two days as the ‌most reasonable offer on the table, after US Secretary of State Marco Rubio called some of ​Iran’s conditions “outrageous and ridiculous”, Reuters reported.

“Is it unreasonable that ​Iran demands that US illegal sanctions ⁠and its naval blockade must be lifted ​before negotiations start and that the war should ​end on all fronts?” Foreign Ministry spokesman Esmaeil Baghaei told a weekly press conference in response to ​Rubio’s remarks.

Iran defended a proposal on Monday to restart peace talks in as ​few as two days as the ‌most reasonable offer on the table, after US Secretary of State Marco Rubio called some of ​Iran’s conditions “outrageous and ridiculous”.

“Is it unreasonable that ​Iran demands that US illegal sanctions ⁠and its naval blockade must be lifted ​before negotiations start and that the war should ​end on all fronts?” Foreign Ministry spokesman Esmaeil Baghaei told a weekly press conference in response to ​Rubio’s remarks.

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Explosions heard in areas in southern Iran, Iranian media report

Earlier on Saturday, Tasnim news agency ‌said ⁠two missiles struck Qeshm Island with no official information on possible damage.

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Explosions were heard on Saturday evening in several areas in southern Iran, including on Qeshm Island in the Strait of Hormuz, Iranian state ​television reported.

Iran’s state TV suggested that the explosions might be linked to ‌Iranian military activities in the strategic waterway, which has become subject to repeated attacks on commercial shipping since the war erupted between the US and Iran in February.

It said Iranian officials have ​not confirmed any missile strikes on the areas, while the semi-official Tasnim news ​agency cited a source as saying that the explosions heard on Qeshm ⁠Island were not related to missile strikes.

Iran’s Revolutionary Guards Navy said early on ​Sunday that two oil tankers were on fire after hitting mines as they attempted to ​pass through an “unauthorized route” in the strait. It was not immediately clear if the incidents referred to by the IRGC were linked to the sound of explosions heard in southern Iranian areas.

Iran has hit ​vessels it says have violated its restrictions on passage through the waterway, as it ​seeks to assert control over the strait and exert pressure on Washington.

Earlier on Saturday, Tasnim news agency ‌said ⁠two missiles struck Qeshm Island with no official information on possible damage.

The reported explosions come days after the US carried out strikes on the island. A US official said those strikes were limited and not a resumption of major combat operations.

The US military said on ​Saturday evening that its ​forces disabled a commercial ⁠vessel that tried to get through the US blockade of Iran.

The US Central Command said one of its aircraft fired at ​the vessel’s stern and disabled the ship after it attempted to ​violate the ⁠blockade.

Countries in the region had been anticipating that US President Donald Trump, who has held off on strikes on Iran during the weeks leading up to Tuesday’s midterm elections, could ⁠restart ​attacks once the voting was over. Iran has repeatedly ​said it would respond to new attacks by striking at US and Israeli targets in neighboring countries.

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Pakistan’s leaders dread US Democrats’ win but its households are praying for it

Pakistan’s courtship of Trump, capped by its mediation in ​the Iran war, earned it a close relationship with his administration. That access has yet to deliver clear economic gains, and congressional scrutiny of Islamabad’s dealings with Trump’s inner ​circle now threatens the rewards its leaders hoped would follow.

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Pakistan’s leaders spent two years courting US President Donald Trump, but after the Democrats’ win in Tuesday’s congressional vote, they are preparing for scrutiny ​of their access to the White House.

Ordinary Pakistanis see the result differently. Many hope the shift in Washington will ease a cost-of-living crisis intensified ‌by the US-Israel war on Iran, Reuters reported.

“We believe meaningful negotiations with the current US administration are not possible, and the ongoing bloodshed will not end until there is a change in [the US] ​government,” Karachi resident Sajjad Ali said.

“We want peace, economic improvement and a reduction in the rising oil prices.”

Asim Zafar, also from Karachi, said he hoped ​the results would rein in Trump. “It could bring changes in important policies and perhaps help prevent some of the injustices being committed ⁠against Muslim countries,” he said.

But for Pakistan’s government and powerful military leadership, analysts say, the outcome is far more worrying.

Pakistan’s courtship of Trump, capped by its mediation in ​the Iran war, earned it a close relationship with his administration. That access has yet to deliver clear economic gains, and congressional scrutiny of Islamabad’s dealings with Trump’s inner ​circle now threatens the rewards its leaders hoped would follow.

A BET ON ONE MAN

The courtship began early in Trump’s second term, with army chief Asim Munir — who Trump has repeatedly described as his “favourite field marshal” — as Islamabad’s main channel to the White House.

Their June 2025 lunch took place unusually without Pakistani civilian officials present, which put the military at the centre of the rapprochement.

According to Pakistan’s military, ​their talks went beyond security to cooperation in mining, energy and cryptocurrency.

Pakistan then joined Trump’s Board of Peace and nominated him for the Nobel Peace Prize, crediting him with ​helping end its May 2025 conflict with India. New Delhi denies US mediation halted hostilities.

Earlier this year, Iran mediation gave the courtship strategic substance: Islamabad relayed messages and hosted April talks between the ‌US and ⁠Iran, but the eventual Islamabad Agreement quickly faltered.

For consumers, Pakistan’s rising diplomatic influence has offered little protection from the war’s costs while the payoff for the state has also been thin. The US Export-Import Bank approved $1.25 billion for Pakistan’s Reko Diq copper and gold project in December 2025. But Pakistan’s signature $10 billion request for a US Treasury facility remains unanswered.

DEALS UNDER SCRUTINY

Pakistan’s outreach, public and private, now carries political risk because several arrangements involve Trump’s family or close associates.

Islamabad has signed memoranda to explore payments in USD1, a stablecoin issued ​by the Trump-linked World Liberty Financial. At ​the signing in January, Finance Minister ⁠Muhammad Aurangzeb said innovation should be “aligned with regulation, stability, and national interest.”

It has also signed another memorandum to redevelop Manhattan’s Roosevelt Hotel, a deal negotiated by envoy Steve Witkoff, and placed a limited drone order with Powerus, whose investors include Trump’s sons Donald Jr. and ​Eric.

“There are no conflicts of interest,” White House spokeswoman Anna Kelly told Reuters in September, when asked about Powerus.

Husain Haqqani, ​a former Pakistani ambassador ⁠to Washington and senior fellow at the Abu Dhabi-based Anwar Gargash Diplomatic Academy, said Pakistan’s leaders had “built a transactional relationship” with Trump’s team. Some arrangements involving the president’s friends and relatives “might not last,” he said. “Pakistan seems totally unprepared for that scrutiny.”

Daniel Markey, a senior fellow at the Washington-based Stimson Center, warned that investigations could taint the wider relationship if dealings appeared ⁠driven by ​private interests.

From Pakistan’s perspective, there may still be cards left to play, analysts said.

The Atlantic Council’s Michael ​Kugelman said Pakistan’s counterterrorism cooperation and Iran diplomacy enjoyed bipartisan support, and Democrats would be more likely to blame problematic deals on Trump than on Pakistan.

But “the risk for Pakistan is that it put so many of ​its diplomatic eggs in the White House basket that it won’t have anything left for the Democrats,” Kugelman said.

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