<p>The Biden administration has initiated secret discussions with Iran to secure the release of American prisoners detained by Tehran as well as to contain the country's expanding nuclear programme, reported the Wall Street Journal citing individuals familiar with the matter.&nbsp;</p>

<p>As these talks resumed, the US also authorised the transfer of 2.5 billion euros (which is equivalent to $2.7 billion) by the Iraqi government for Iranian electricity and gas imports. The amount had been previously frozen due to American economic sanctions.</p>

<h2><strong>Iran's demands for prisoner release, access to trapped funds</strong></h2>

<p>In return for the release of prisoners and limitations on nuclear work, reports said Iran is seeking access to billions of dollars in Iranian energy revenue currently held abroad due to US sanctions.</p>

<p>Also Read | <a href="https://www.wionews.com/india-news/india-lg-reviews-amarnath-yatra-arrangements-in-pahalgam-over-60k-troops-to-be-deployed-for-security-604339">India: LG reviews Amarnath Yatra arrangements in Pahalgam, over 60k troops to be deployed for security</a></p>

<p>Iranian officials have consistently linked the potential release of prisoners to gaining access to $7 billion in Iranian funds held in South Korea. They have also demanded access to billions of dollars held in Iraq, intended for gas and oil deliveries.</p>

<h2><strong>Transfer of funds 'routine', unrelated to discussions: US officials&nbsp;</strong></h2>

<p>US officials stated that the fund transfer of 2.5 billion euros by the Iraqi government was a routine process and they are not connected to the ongoing discussions. According to reports, similar transfers have been made in the past. The only difference is that this time the funds were released in euros rather than local currencies.</p>

<p>It is pertinent to note that US President Joe Biden had previously promised to revive an international nuclear agreement that imposed restrictions on Iran's nuclear activities in exchange for the lifting of economic sanctions. However, in November, he declared that such a deal was no longer feasible.</p>

<p>Also Read | <a href="https://www.wionews.com/world/shark-that-ate-russian-tourist-on-camera-to-be-mummified-put-on-display-604333">Shark that ate Russian tourist on camera to be mummified, put on display</a></p>

<p>Under former president Donald Trump, the Iran Nuclear Deal or the Joint Comprehensive Plan of Action (JCPOA) was&nbsp;revoked unilaterally by the US in May 2018. At the time, Trump termed the nuke deal with Iran as the “most horrible deal ever”.&nbsp;</p>

<h2><strong>Indirect contact between US, Iranian officials</strong></h2>

<p>The initial discussions were made between senior US officials and officials from Iran in New York in the month of December last year. Following those discussions, the White House representatives have made multiple trips to Oman for further indirect contacts, according to media reports quoting sources.</p>

<p><strong>Watch | UK Police seek motive for Nottingham murders, man arrested after police finds three dead</strong></p>

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<p>WSJ report said that Omani officials have served as intermediaries often between US and Iran in order to facilitate communication between the two warring sides.</p>

<h2><strong>Balancing act for Biden administration</strong></h2>

<p>The current diplomatic effort aims to manage escalating tensions between Iran and US. This is especially crucial as Iran has allegedly ramped up its supply of drones to Russia to back Moscow in its war on Ukraine which has been waging on for over a year now. Other points of infliction are Iran's continued uranium enrichment activities along with the seizure of oil tankers in the Persian Gulf.</p>

<h2>Political considerations, opposition to nuke deal&nbsp;</h2>

<p>The discussions with Iran will also be keenly watched by American voters back home. Therefore, the Biden administration is cautious about thrusting negotiations with Iran into the spotlight as the presidential campaign approaches.</p>

<p>Any formal agreement or even an informal understanding, which seems more likely, could trigger a review in Congress. Both Republicans and some Democrats strongly oppose a nuclear deal with Iran.</p>

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The Biden administration has initiated secret discussions with Iran to secure the release of American prisoners detained by Tehran as well as to contain the country's expanding nuclear programme, reported the Wall Street Journal citing individuals familiar with the matter.

The Biden administration has initiated secret discussions with Iran to secure the release of American prisoners detained by Tehran as well as to contain the country's expanding nuclear programme, reported the Wall Street Journal citing individuals familiar with the matter. As these talks resumed, the US also authorised the transfer of 2.5 billion euros (which is equivalent to $2.7 billion) by the Iraqi government for Iranian electricity and gas imports. The amount had been previously frozen due to American economic sanctions. Iran's demands for prisoner release, access to trapped funds In return for the release of prisoners and limitations on nuclear work, reports said Iran is seeking access to billions of dollars in Iranian energy revenue currently held abroad due to US sanctions. Also Read | India: LG reviews Amarnath Yatra arrangements in Pahalgam, over 60k troops to be deployed for security Iranian officials have consistently linked the potential release of prisoners to gaining access to $7 billion in Iranian funds held in South Korea. They have also demanded access to billions of dollars held in Iraq, intended for gas and oil deliveries. Transfer of funds 'routine', unrelated to discussions: US officials US officials stated that the fund transfer of 2.5 billion euros by the Iraqi government was a routine process and they are not connected to the ongoing discussions. According to reports, similar transfers have been made in the past. The only difference is that this time the funds were released in euros rather than local currencies. It is pertinent to note that US President Joe Biden had previously promised to revive an international nuclear agreement that imposed restrictions on Iran's nuclear activities in exchange for the lifting of economic sanctions. However, in November, he declared that such a deal was no longer feasible. Also Read | Shark that ate Russian tourist on camera to be mummified, put on display Under former president Donald Trump, the Iran Nuclear Deal or the Joint Comprehensive Plan of Action (JCPOA) was revoked unilaterally by the US in May 2018. At the time, Trump termed the nuke deal with Iran as the “most horrible deal ever”. Indirect contact between US, Iranian officials The initial discussions were made between senior US officials and officials from Iran in New York in the month of December last year. Following those discussions, the White House representatives have made multiple trips to Oman for further indirect contacts, according to media reports quoting sources. Watch | UK Police seek motive for Nottingham murders, man arrested after police finds three dead × WSJ report said that Omani officials have served as intermediaries often between US and Iran in order to facilitate communication between the two warring sides. Balancing act for Biden administration The current diplomatic effort aims to manage escalating tensions between Iran and US. This is especially crucial as Iran has allegedly ramped up its supply of drones to Russia to back Moscow in its war on Ukraine which has been waging on for over a year now. Other points of infliction are Iran's continued uranium enrichment activities along with the seizure of oil tankers in the Persian Gulf. Political considerations, opposition to nuke deal The discussions with Iran will also be keenly watched by American voters back home. Therefore, the Biden administration is cautious about thrusting negotiations with Iran into the spotlight as the presidential campaign approaches. Any formal agreement or even an informal understanding, which seems more likely, could trigger a review in Congress. Both Republicans and some Democrats strongly oppose a nuclear deal with Iran. WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here. ×

Biden administration holds quiet talks with Iran to free US prisoners, curb nuke programme

<p>World stocks were knocked off 22-month highs on Wednesday as a renewed flare-up in <a href="https://www.wionews.com/business-economy/asian-markets-slip-amidst-us-china-trade-war-251380">Sino-US&nbsp;tensions</a> and the creeping return of US&nbsp;recession fears fuelled a bid for bonds and other "safe" assets such as gold.</p>

<p>European equities tumbled half a per cent at the open, edging further off recent four-year highs hit when it had appeared Washington and Beijing were about to agree on the first phase of a trade deal. Wall Street futures were marked lower while oil prices suffered their biggest daily loss in seven weeks.</p>

<p>The mood in markets soured after the US&nbsp;Senate angered China by passing a bill requiring annual certification of Hong Kong's autonomy and warning Beijing against violently suppressing protesters. China demanded the United States stop interfering in its internal affairs and said it would retaliate.</p>

<p>US&nbsp;President <a href="https://www.wionews.com/world/trump-cook-meeting-culminates-with-visit-to-apple-factory-263332">Donald Trump</a> also threatened to up tariffs on Chinese goods if a trade deal is not reached soon.</p>

<p>"Markets have taken a bit of a wobble due to the talk about Hong Kong, but they had rallied a lot in recent weeks on expectations of a (trade) deal," said Salman Ahmed, chief investment strategist at Lombard Odier.</p>

<p>Ahmed said both sides needed a deal to be signed -- Trump cannot afford a recession because of his re-election bid next year, while China's economy is slowing markedly.</p>

<p>"I think we are looking at a short-term setback rather than a major issue that would derail the process. The bill still has to be signed into law by Trump so there's a high probability he will use it as leverage against China."</p>

<p>MSCI's index of Asia-Pacific shares ex-Japan tumbled 0.7 per cent,&nbsp;Japan's Nikkei fell 0.8 per cent and Shanghai blue chips lost 1 per cent. MSCI's global index slipped 0.3 per cent, ending a three-day winning streak.</p>

<p>Wall Street was tipped for a weaker start with futures down 0.2 per cent.</p>

<p>US shares closed just below record highs on Tuesday, however, and world stocks remain just 0.5 per cent off all-time peaks hit last year.</p>

<p>"It was noticeable that fixed income markets rallied despite equity markets being stable, suggestive of a market that remains cautious about the growth outlook," ANZ told clients.</p>

<p>US&nbsp;10-year Treasury yields, which have fallen in six out of the past seven sessions, slipped 5 basis points to 1.735 per cent, a 2-1/2 -week low.</p>

<p>German bonds fell for the third straight day to touch a 2-1/2 week low,&nbsp;shrugging off European Central Bank Chief Economist Philip Lane's comment that the eurozone economy would not fall into a recession.</p>

<p>"It's all about the sentiment on trade. We have this classical risk-off trade taking place again," Rainer Guntermann, a rates strategist at Commerzbank, said.</p>

<p>Moves on commodity prices and bond markets imply fears of the economic recession may be creeping back.</p>

<p>Japan's October exports fanned those fears further, tumbling at their quickest rate in three years, with shipments to China and the United States suffering big falls.</p>

<p>US&nbsp;crude stocks rose far more than expected, the American Petroleum Institute said, driving Brent crude&nbsp;into a 2.6&nbsp;per cent&nbsp;slide. Brent fell another half per cent, inching towards the $60 mark last breached three weeks ago.</p>

<p>A marked flattening of the curve the gap between two-year and 10-year yields is at its narrowest in more than two weeks -- also hints at a return of recession fears. The curve inverted earlier this year, returning to normal only after three US&nbsp;interest rate cuts.</p>

<p>But Federal Reserve officials have hinted there will be no further easing, for now, a message the US&nbsp;central bank may reiterate later in the day when it releases minutes from its last meeting. Markets are now pricing in just a 0.8&nbsp;per cent&nbsp;chance of a December rate cut&nbsp;</p>

<p>Dour forecasts from retailers Home Depot and Kohl's also fuelled worries about US consumer spending, which has so far been extremely robust, in contrast to manufacturing.</p>

<p>"We've had a bit of topping out of the U.S. consumer in the past couple of months, possibly we are seeing some catch up between consumer and manufacturing sectors," Lombard Odier's Ahmed said.</p>

<p>On currencies, the dollar nudged lower versus the yen to 108.4&nbsp;but firmed 0.13 per cent&nbsp;versus a basket of currencies. Gold rose 0.4&nbsp;per cent.&nbsp;</p>


World stocks were knocked off 22-month highs on Wednesday as a renewed flare-up in Sino-US tensions and the creeping return of US recession fears fuelled a bid for bonds and other "safe" assets such as gold.

World stocks were knocked off 22-month highs on Wednesday as a renewed flare-up in Sino-US tensions and the creeping return of US recession fears fuelled a bid for bonds and other "safe" assets such as gold. European equities tumbled half a per cent at the open, edging further off recent four-year highs hit when it had appeared Washington and Beijing were about to agree on the first phase of a trade deal. Wall Street futures were marked lower while oil prices suffered their biggest daily loss in seven weeks. The mood in markets soured after the US Senate angered China by passing a bill requiring annual certification of Hong Kong's autonomy and warning Beijing against violently suppressing protesters. China demanded the United States stop interfering in its internal affairs and said it would retaliate. US President Donald Trump also threatened to up tariffs on Chinese goods if a trade deal is not reached soon. "Markets have taken a bit of a wobble due to the talk about Hong Kong, but they had rallied a lot in recent weeks on expectations of a (trade) deal," said Salman Ahmed, chief investment strategist at Lombard Odier. Ahmed said both sides needed a deal to be signed -- Trump cannot afford a recession because of his re-election bid next year, while China's economy is slowing markedly. "I think we are looking at a short-term setback rather than a major issue that would derail the process. The bill still has to be signed into law by Trump so there's a high probability he will use it as leverage against China." MSCI's index of Asia-Pacific shares ex-Japan tumbled 0.7 per cent, Japan's Nikkei fell 0.8 per cent and Shanghai blue chips lost 1 per cent. MSCI's global index slipped 0.3 per cent, ending a three-day winning streak. Wall Street was tipped for a weaker start with futures down 0.2 per cent. US shares closed just below record highs on Tuesday, however, and world stocks remain just 0.5 per cent off all-time peaks hit last year. "It was noticeable that fixed income markets rallied despite equity markets being stable, suggestive of a market that remains cautious about the growth outlook," ANZ told clients. US 10-year Treasury yields, which have fallen in six out of the past seven sessions, slipped 5 basis points to 1.735 per cent, a 2-1/2 -week low. German bonds fell for the third straight day to touch a 2-1/2 week low, shrugging off European Central Bank Chief Economist Philip Lane's comment that the eurozone economy would not fall into a recession. "It's all about the sentiment on trade. We have this classical risk-off trade taking place again," Rainer Guntermann, a rates strategist at Commerzbank, said. Moves on commodity prices and bond markets imply fears of the economic recession may be creeping back. Japan's October exports fanned those fears further, tumbling at their quickest rate in three years, with shipments to China and the United States suffering big falls. US crude stocks rose far more than expected, the American Petroleum Institute said, driving Brent crude into a 2.6 per cent slide. Brent fell another half per cent, inching towards the $60 mark last breached three weeks ago. A marked flattening of the curve the gap between two-year and 10-year yields is at its narrowest in more than two weeks -- also hints at a return of recession fears. The curve inverted earlier this year, returning to normal only after three US interest rate cuts. But Federal Reserve officials have hinted there will be no further easing, for now, a message the US central bank may reiterate later in the day when it releases minutes from its last meeting. Markets are now pricing in just a 0.8 per cent chance of a December rate cut Dour forecasts from retailers Home Depot and Kohl's also fuelled worries about US consumer spending, which has so far been extremely robust, in contrast to manufacturing. "We've had a bit of topping out of the U.S. consumer in the past couple of months, possibly we are seeing some catch up between consumer and manufacturing sectors," Lombard Odier's Ahmed said. On currencies, the dollar nudged lower versus the yen to 108.4 but firmed 0.13 per cent versus a basket of currencies. Gold rose 0.4 per cent.

Flare-up of Sino-US tensions over Hong Kong knocks world shares off 22-month high

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Biden administration holds quiet talks with Iran to free US prisoners, curb nuke programme

Flare-up of Sino-US tensions over Hong Kong knocks world shares off 22-month high