The Biden administration has granted a waiver to release $6 billion in frozen Iranian oil funds in exchange for the release of five American detainees.
NBC News reported that Secretary of State Antony Blinken recently issued a waiver enabling international banks to transfer funds from South Korea to Qatar.
The funds are earmarked for Iran's purchase of essential humanitarian items, including food and medicine, permitted under US economic sanctions.
Congress was notified of the move on Monday, according to The Washington Post.
The five Iranian-Americans include Siamak Namazi, Morad Tahbaz, Emad Shargi and two unnamed individuals. The Biden administration has also committed to release five Iranian nationals currently detained in the US.
However, Republicans has criticised the swap which could take place as early as next week, Anadolu news agency reports.
"First Joe Biden used 9/11 as an excuse to flee Afghanistan. Now he desecrates this day by paying ransom to the world’s worst state sponsor of terrorism. Shameful," Republican Senator Tom Cotton said in a statement.
Another Republican senator, Mitt Romney, believes the move will pave the way for more kidnappings.
"If we’re paying a billion dollars per kidnapped individual, then you’re going to see more kidnappings," said Romney. "That’s why you don’t negotiate with terrorists, that’s why you don’t negotiate with kidnappers."
Representative Michael McCaul, the chairman of the House Foreign Affairs Committee, expressed deep concern over the waiver decision.
He said the move "creates a direct incentive for America's adversaries to conduct future hostage-taking."
Former President Donald Trump also used his social media platform to criticise the Biden administration's decision.
