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A report by Reuters has revealed further details on the Qatari-mediated deal between Iran and the United States where $6 billion of previously frozen Iranian funds are set to be wired to banks in Qatar.

This sequence will result in the release of up to five detained US dual nationals from Iran, alongside a similar number of Iranian prisoners held in the US. This information comes from sources familiar with the negotiations, including eight Iranian insiders, who have spoken to Reuters.

Details on the prisoner swap

As an initial step, on August 10, Iran released four US nationals and one British national whom Iran labels as terrorists from Tehran's Evin prison, placing them under house arrest.

Among the detainees are Siamak Namazi, aged 51, and Emad Sharqi, aged 59, both businessmen, as well as Morad Tahbaz, aged 67, who also holds British nationality, according to the Biden administration. The identities of the fourth and fifth Americans, one of whom is reportedly a woman, remain undisclosed. Sources to Reuters also said the prisoners will transit through Qatar to then travel to their final destinations.

According to sources, "American prisoners will fly to Qatar from Tehran, and Iranian prisoners will fly from the US to Qatar, and then be transferred to Iran."

At the heart of these negotiations was the state of Qatar, which held eight rounds of talks between Iranian and American officials since March 2022. Negotiators from Tehran and Washington stayed in separate hotels in Doha during the period in which talks were being held. The earlier sessions primarily focused on Iran's nuclear program, which the US has fiercely contended, while the discussions in later stages concentrated on prisoner releases. 

Read more: Iran slams US, allies foiled chance to revive JCPOA last year

Who led the talks?

Leading the talks was US Special Envoy for Iran, Robert Malley, who is currently on unpaid leave pending a security clearance review, and he was joined by US Deputy Special Envoy Abram Paley. Meanwhile, Deputy Foreign Minister and top nuclear negotiator, Ali Bagheri Kani, led the Iranian side.

Mehdi Safari, Iran's Deputy Foreign Minister for Economic Affairs, participated in the Iranian delegation during two meetings held in Qatar to discuss the fund's transfer, as confirmed by a senior Iranian diplomat who spoke to Reuters.

Acting as the intermediary mediator was Mohammed al-Khulaifi, the Qatari Minister of State at the Foreign Ministry.

How will Iran benefit from its released finances?

As part of the agreement, Qatar will oversee a financial arrangement, covering banking fees and monitoring how Iran spends the unfrozen cash. The goal is to ensure that no money is used for items subject to gruesome US sanctions on the country. The money will be spent primarily on food and medicine.

Reuters collected this information after interviewing four Iranian officials, two US sources, a senior Western diplomat, a Gulf government advisor, and a source familiar with the negotiations. All sources have requested anonymity due to the sensitivity of the ongoing deal.

The US State Department has refrained from announcing the exact timing of the prisoner release nor has it released any information on the bank transfers and has declined to discuss the details of what it terms "an ongoing and highly sensitive negotiation."

On September 5, South Korean Foreign Minister Park Jin revealed that efforts were underway to transfer Iran's funds. The State Department spokesperson emphasized that the US-Iran relationship lacks trust and that Iran is judged by its actions.

Read more: US stance on Iran remains unchanged after prisoner swap: Blinken

How will the money be transferred and used?

Washington has agreed to the movement of Iranian funds from South Korea to restricted accounts held by financial institutions in Qatar. Once the funds are transferred, they will be held in restricted accounts in Qatar, with the US overseeing their use and timing. The deal has faced criticism from Republicans, who argue that it amounts to paying ransom for US citizens.

According to diplomatic, Iranian, and regional sources, once the funds reach Qatar from South Korea via Switzerland, Qatari officials will instruct Tehran and Washington to proceed with the releases, based on a document signed by both sides and Qatar in late July or early August, according to the news agency's sources.

The transfer to banks in Qatar is anticipated to conclude as early as next week, provided that everything goes according to plan. The most complex aspect of the talks -- as highlighted by two Iranian insiders, the source familiar with the negotiations with the senior Western diplomat -- was establishing a mechanism to ensure transparency in the money transfer.

The $6 billion in Iranian assets, resulting from oil sales, had been frozen under extensive US oil and financial sanctions against Iran.

In an effort to salvage the negotiations, Qatar pledged to cover the banking fees for the funds' transfer from Seoul to Switzerland and subsequently to Qatari banks. Qatar also assumed the responsibility of overseeing expenses, as explained by an Iranian insider familiar with the talks.

On June 14, the central bank governors of Iran and Qatar met in Doha to discuss the funds' transfer, as indicated by a second Iranian insider and the source familiar with the negotiations. Both the Central Bank of Iran and the Qatar Central Bank have declined to comment on the matter.

Read more: Iran, US reach deal: Convicted US spies for jailed Iranians, assets