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

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

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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.

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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.

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Under former president Donald Trump, the Iran Nuclear Deal or the Joint Comprehensive Plan of Action (JCPOA) wasrevoked 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.

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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.

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