The Biden administration formally notified Congress on Monday that it will release $6bn in frozen Iranian funds and intends to release five Iranian prisoners in a sign that efforts to decrease tensions between the powers may soon bear fruit.

Tehran recently transferred five US citizens from Evin prison to house arrest, kicking off an arrangement that Washington hopes could bring progress on talks about the Islamic republic’s nuclear programme and other areas of tension.

The five American citizens held in Iran could return to the US this month, once Washington releases $6bn in Iranian oil revenue that is frozen in South Korea. Monday’s notification was the first official confirmation that the deal will also include the release of five Iranian prisoners, though the US did not reveal their identities.