Fact Check: Donald Trump Claims U.S. Gave Iran $6 Billion in Hostage Deal

Iran's relationship with Hamas has heightened tensions between Washington and Tehran, after the militant group attacked U.S. ally Israel on October 7, killing hundreds of civilians.

Beyond its relationship with Hamas, Iran is also aligned with the Houthis, a militia that controls much of Yemen and recently threatened all-out war with Israel.

In an interview posted via his Truth Social social media channel, former President Donald Trump alleged the U.S. had, despite the complex geopolitics, recently cut a deal with Iran where it "gave" the country $6 billion in a hostage exchange.

The Claim

On November 24, 2023, Donald Trump reposted via Truth Social an interview he gave to Real America's Voice in which he claimed that the U.S. gave Iran "$6 billion that we got for hostages."

Trump said: "Think of that, we gave, they got five (prisoners), we got five (prisoners), and they (Iran) said 'Alright that's probably as good as this group is going to do' and then they (the U.S.) said, 'But, in addition they get $6 billion.'

"Well, nothing surprises me with this group, but we gave them that."

The Facts

Trump is referring to a sanctions waiver made by the Biden administration in September this year, which allowed $6 billion in frozen Iranian funds to be transferred from South Korea to Qatar as part of a deal to free five detained Americans in Iran. Five Iranian prisoners were released by the U.S.

The deal, which was signed by U.S. Secretary of State Antony Blinken, allowed frozen revenues from past Iranian oil sales to be moved to Qatar's central bank, from where it could be disbursed only for the purchase of humanitarian goods for Iran.

The Biden administration faced scrutiny for this decision following the attacks by Hamas on Israel on October 7. The Sunni Muslim group has maintained strong connections with Iran.

After the attack, the White House National Security Council said the money had not been accessed by Iran, saying that it could only be released for humanitarian purposes.

"Not a single cent from these funds has been spent, and when it is spent, it can only be spent on things like food and medicine for the Iranian people," a spokesperson for the NSC, Adrienne Watson, said.

"These funds have absolutely nothing to do with the horrific attacks today, and this is not the time to spread disinformation."

Ali Vaez, the International Crisis Group's Iran project director, previously told Newsweek that the "U.S. actually has oversight over every single order that Iran submits to," adding, "It can veto them. It can freeze the funds again. So, this is a deal that is 100 percent in the interest of the United States."

The State Department has said the funds would be moved to restricted accounts in Qatar, and the United States would have oversight as to how and when the funds were used.

"It is longstanding U.S. policy to ensure our sanctions do not prevent food, medicine, and other humanitarian goods and services from flowing to ordinary people, no matter how objectionable their governments," it said in a statement in September.

While critics have argued Iran's knowledge it has access to this money could help it free up other funding, the way Trump has characterized the deal is misleading.

The money was not given to Iran by the U.S., and, as has been stated, the funding is held outside Iran and limited to specific uses.

Donald Trump's spokesperson Steven Cheung told Newsweek: "President Trump has already explained this multiple times in his speeches and interviews,

"By granting Iran $6b, Iran could then use their immediate funds knowing that $6b is going to be coming into their coffers."

Newsweek has contacted the White House for comment.

The characterization is similar to a claim made recently that under the Obama administration the U.S. "gave" Iran $150 billion. In 2015, as part of an international deal with Iran called the Joint Comprehensive Plan of Action, Iran agreed to cut back on nuclear enrichment programs in exchange for the unfreezing of its own assets.

The U.S. taxpayer paid nothing toward this and the value of the assets was said by some, including the U.S. Treasury, to be less than $150 billion.

The Ruling

False.

Trump's claim is misleading. Earlier this year, the Biden administration unfroze Iranian oil revenue held in South Korea, to be held in a Qatar bank, in exchange for five American prisoners Iran held. The money can only be used for humanitarian purposes, such as food and medicine, and requires Iran to submit requests through Qatar.

No money was given directly to Iran.

FACT CHECK BY Newsweek's Fact Check team