U.S., Iran May Be Negotiating Payoff for American Hostages

Latest Developments

Iran’s foreign minister said on Sunday the United States and Iran were on the cusp of a “prisoner swap,” with media reports adding that the exchange could include a U.S. ransom payment to Tehran. Washington denied the claim but announced that Special Presidential Envoy for Hostage Affairs Roger Carstens would travel to Qatar, a key broker between American and Iran, on March 13-16 to discuss “wrongful detention and hostage cases worldwide.” This suggests negotiations are still ongoing.

Under the reported agreement, Washington would authorize Tehran’s access to $7 billion in frozen funds tied to terrorism in exchange for the release of an unidentified number of U.S. citizens held hostage in Iran. The news follows last week’s emotional CNN interview of Siamak Namazi, a U.S. citizen held hostage by Iran, who urged President Joe Biden to put the “liberty of innocent Americans above politics.” A senior Iranian official claimed that Tehran authorized the interview — suggesting the regime viewed it as a helpful pressure tactic against Washington — but Namazi’s U.S.-based attorney denied that was true.

Expert Analysis

“Our hearts break for the Namazi family and other families of hostages. Yet tragically, paying a $7 billion ransom will only lead to more hostage-taking of American citizens — and not just by Iran. Washington should not be using frozen funds tied to terrorism to provide budget support to the world’s leading state sponsor of terrorism as it plots terror attacks against U.S. citizens on U.S. soil. Rather, the United States should put maximum pressure on Iran until all U.S. hostages are released.” — Richard Goldberg, FDD Senior Advisor

Paying for Hostages Leads to More Hostage-Taking

In 2015, the Obama administration negotiated a similar scheme alongside the nuclear deal, formally known as the Joint Comprehensive Plan of Action, sending Iran $400 million — the first installment of a $1.7 billion payment — at the same time that Tehran released four Americans. The result was more hostages taken by Iran, including Baquer Namazi, Xiyue Wang, Morad Tahbaz, and Emad Shargi. If $1.7 billion encouraged the regime to take additional hostages, $7 billion will guarantee much more hostage-taking to come.

Misleading Claims About Humanitarian Uses for the $7 Billion

The Biden administration reportedly may claim that the agreement will allow access to the $7 billion only for the purchase of food, medicine, or other humanitarian purposes, stated NBC News. But given the fungibility of money, such sanctions relief would likely amount to budget support for a regime running low on cash. Notably, the accounts in South Korea are tied to the Central Bank of Iran and the National Iranian Oil Company, both of which are subject to U.S. terrorism sanctions for financing the Islamic Revolutionary Guard Corps Quds Force.

Gold Star Families Eye $7 Billion for Terror Judgements

Last year, more than 1,000 U.S. military veterans and Gold Star family members sent a letter to President Biden urging him to deny Iran access to frozen funds until Tehran first pays federal court judgments awarded to American victims of Iran-sponsored terrorism. Releasing the $7 billion in South Korean-based accounts could deny those victims the ability to one day collect their judgements.