US implements restrictions on unfrozen Iranian funds

US implements restrictions on unfrozen Iranian funds

Washington - In the initial phase of a potentially intricate sequence of actions that could span several weeks, Iran has permitted the transfer of four detained US citizens from Tehran's Evin prison to house arrest, with a fifth individual already under home confinement. This development has been followed by an arrangement where the United States would release certain Iranian prisoners held in US correctional facilities, as stated by Iran's mission to the United Nations.

Recent reports, as conveyed by sources familiar with the matter to the Wall Street Journal on Friday, suggest that Iran has notably decelerated its accumulation of enriched uranium approaching weapons-grade levels, further diluting some portions of its existing stockpile. While John Kirby, a spokesperson, refrained from confirming the accuracy of this information, he expressed that any actions undertaken by Iran to slow down its enrichment process would be favorably received.

Notably, the situation stems from heightened tensions following the withdrawal of then-US President Donald Trump, a Republican, from the 2015 nuclear agreement that aimed to curb Iran's nuclear endeavors. Subsequent negotiations between the Biden administration and Iran to reinstate the accord have encountered obstacles. Iran continues to assert that it has no intention of pursuing nuclear weapons.

The White House has underscored the existence of restrictions pertaining to the utilization of any unfrozen funds as part of an emerging agreement, which has led to the release of five Americans from prison into house arrest in Tehran. John Kirby assured reporters that the United States will have complete oversight over the allocation and purpose of any released Iranian funds. Presently, an estimated $6 billion in Iranian assets are held in South Korea. Kirby clarified that these funds will primarily be permitted for essential needs like food, medicine, and medical equipment without dual military applications. Rigorous due diligence standards, guided by input from the US Treasury Department, will be upheld.

Upon the release of the unfrozen funds, the five Americans are expected to be allowed to depart from Iran, as per an informed source cited by Reuters. While acknowledging that negotiations remain ongoing and the deal remains unfinalized, Kirby emphasized that the transfer of the restricted account from South Korea to Qatar would face no obstacles. Once transferred, Iran would gain access to the funds.

This prospective transfer has elicited criticism from Republicans, who argue that President Joe Biden, a Democrat, is essentially paying a ransom for the release of the US citizens. Furthermore, they contend that Iran's potential use of the funds for humanitarian purposes could indirectly free up resources for its nuclear program or to support militias in nations such as Iraq, Lebanon, and Yemen.

US Secretary of State Antony Blinken affirmed on Thursday that the deal does not translate to sanctions relief for Iran. Amid the multifaceted developments, negotiations persist, and the complexities surrounding the situation continue to unfold.

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