Explained | Is the U.S.-Iran hostage swap finally materialising?  Premium

A potential U.S-Iran hostage deal may materialise soon, with Iran moving five Iranian American detainees to house arrest and a tentative release of frozen Iranian funds housed in South Korea

The story so far: Iran on Thursday moved five Iranian Americans from prison to house arrest as part of a tentative deal that is still being negotiated and can lead to their full release. Iran agreed to the release in exchange for around $6-$7 billion frozen in South Korea because of sanctions on the country, an Associated Press (AP) report said.

However, Mohammad Jamshidi, the Iranian President’s Deputy Chief of Staff for Political Affairs, said on Friday that the American detainees will remain in Iran until the full transfer of frozen funds, as per an Islamic Republic News Agency (IRNA) report.

The move was acknowledged by U.S. Secretary of State Antony Blinken in a press conference with Mexican Foreign Secretary Alicia Bárcena on Thursday. Responding to a question asked by a CNN journalist, Mr. Blinken said that the development to move the detainees to house arrest was a “positive step”.

“But I don’t want to get ahead of its conclusion because there is more work to be done to actually bring them home. My belief is that this is the beginning of the end of their nightmare and the nightmare that their families have experienced,” he added. The Secretary of State refused to elaborate on the engagement with Iran to not jeopardise the “completion of this process and the return home of (our) fellow citizens.”

Mr. Blinken said that in their efforts to bring Americans home, Iran’s own funds would be used and transferred to restricted accounts such that they can only be used for humanitarian purposes, permitted under the sanctions. The development will not lead to any relief in sanctions on Iran, he added.

On the other hand, Iran’s Foreign Ministry released a statement on Friday, saying that the process of releasing billions of dollars from the country’s assets has begun. It also added that Iran is pursuing the release of Iranians detained in the U.S. for years and that will be “realised in the near future”.

Iran has also insisted that it will have full control over how these assets are used. Quoting sources, IRNA also said that the deal includes a “significant amount” of funds blocked in the Trade Bank of Iraq.