The United States and Iran have reached an agreement to exchange five American inmates for the release of $6 billion in frozen funds.

The Biden administration has reached an agreement with Iran, wherein $6 billion in frozen funds will be released. This release is contingent upon the release of five American prisoners held in Iran. To facilitate this transaction, the administration has issued a blanket waiver, allowing international banks to transfer $6 billion in frozen Iranian funds from South Korea to Qatar without the risk of facing U.S. sanctions.

Furthermore, as a component of the agreement, the administration has consented to the release of five Iranian individuals who are currently detained within the borders of the United States.

The sanctions waivers were approved by Secretary of State Antony Blinken towards the end of last week, following a statement by U.S. and Iranian officials a month earlier, indicating the existence of a preliminary accord.

According to the notification acquired by The Associated Press, Congress was not apprised of the waiver decision until Monday.

The details of the agreement had been previously disclosed and the granting of the waiver was anticipated. However, the announcement signified the initial instance in which the administration officially announced its intention to release five Iranian inmates as a component of the agreement. The identities of the convicts have not been disclosed.

In the preceding month, a transfer occurred wherein four out of the five individuals held in custody in Iranian correctional facilities were relocated to a state of confinement at a hotel, commonly referred to as house arrest. This particular arrangement has been subject to significant controversy, with Republican critics characterizing it as akin to a ransom demand.

One individual has already been placed under home arrest.

The granting of the waiver is expected to have a positive impact for the Iranian economy, particularly during a period when Iran is perceived as a mounting concern for the safety of U.S. military personnel and allies in the Middle East.

The waiver pertains to the exemption granted to European, Middle Eastern, and Asian banks, ensuring their compliance with U.S. sanctions while facilitating the conversion of frozen funds in South Korea. These funds will thereafter be transferred to Qatar's central bank, where they will be stored for the purpose of enabling Iran to procure humanitarian commodities.