In a confusing turn of events what seems to be an unprecedented unequal resolution to negotiations has resulted in a shocked global community and outrage towards the United States’ current administration. The negotiated deal includes the release of 5 Americans imprisoned in Iran and the access to $6 billion in restricted accounts. Upon the conclusion of the deal, which had been done in secret, the headlines and rumors began to spread that America paid Iran for the release of prisoners. This is a dangerous precedent to set, with harsh consequences that could follow.
However, the deal that was struck between the US and Iran was very different from what the media had portrayed. In short, the terms called for a prison swap of 5 prisoners on either side (5 American prisoners held by Iran, and 5 Iranian prisoners held by the US). In addition, the deal would give Iran access to their own funds ($6 billion) that had previously been frozen. This is not America paying Iran, furthermore, it is important to note that all the money is actually frozen in South Korean banks.
The funds, originally payments for Iranian energy products for South Korea, would be unfrozen and distributed back to Iran with stipulations. The United States agreed to help move the money from South Korea to Qatar, where it could then be distributed to Iran. The stipulations determine that the money can only be used for non-sanctioned purposes, mainly humanitarian goods and services. To ensure the money does not go to other means, such as nuclear programs, the US will be closely monitoring the transfer. The last is probably the most impactful, as Biden just set a precedent that America negotiated for hostages and will give a lot to bring Americans home.
The goal of these negotiations, besides granting the freedom of 5 Americans, was to defuse tension between the US and Iran. In recent years tensions between the two have been on the rise and the fact that a negotiation of any terms was agreed upon shows a step towards diplomacy. That being said, there are risks. Iran could simply lie about where and how they spend the new funds. While the money has been unfrozen strictly for humanitarian purposes, it is unlikely we develop a mechanism that completely follows where all the money is spent accurately and avoids this risk. Iran could use the money for humanitarian aid as told, but could then use other funds to support sanctioned programs. The fact is that this money will add $6 billion to their budget, in a manner that they could follow the terms by moving money around that would have been spent on humanitarian aid. Lastly, the US just set a dangerous precedent that those who hold American hostages may be able to fight for higher rewards. Some argue that this puts a price on Americans abroad, while others claim that it makes America look weak.
Regardless of what you think, the facts remain that the United States negotiated for 5 Americans, creating a precedent that malicious actors could take advantage of. The administrations to follow will need to confront this issue and decide whether to draw a line or continue negotiations no matter the price. As for Iran, they will have ways to move these funds around to invest in their project and programs, but it will be difficult under Washington’s eye.
Author: Gabriel McGaw
