After a two-year struggle to revive their nuclear deal, the United States of America and Iran appear to have taken an important initial step in rebuilding an atmosphere conducive for talks. Details emerged last week of a prisoner-exchange agreement between the two nations under which each side will release five citizens of the other currently in its custody. Iran has reportedly moved many of the Americans expected to eventually be released from the notorious Evin prison to house arrest. On the American side, in addition to the release of five Iranian prisoners, Washington will allow Tehran conditional access to $6 billion of Iranian funds from oil sales currently stuck in South Korea because of sanctions. These funds, according to the US, can only be used for humanitarian purposes such as the purchase of food and medicines. To be sure, the US and Iran have, so far, only embarked upon the first moves towards the execution of this agreement. The history of their relationship is pockmarked with multiple false starts. Even if the prisoner swap goes ahead as planned, there is no guarantee that it will pave the way for a broader breakthrough in ties. Yet, for those who believe in the power of diplomacy over conflict, the effort offers hope.

Relations between the US and Iran have been in decline since the former US president, Donald Trump, pulled out of the Iran nuclear deal. The administration of the current president, Joe Biden, has attempted to resurrect that pact but has demanded additional concessions that Iran has refused to agree to. In effect, most sanctions from Mr Trump’s era against Iran remain in place. Those extra demands from Mr Biden’s administration show just how politically sensitive any negotiations with Iran are in America. In addition, tensions soared last year amid popular protests across Iran following the death of a young woman, Mahsa Amini. Tehran blamed the West for fuelling those protests. Against that backdrop, both sides will know that any major diplomatic gain will need time and patience and might not be possible before the next US presidential election. Yet, confidence-building measures are often the first step towards larger efforts at normalisation between estranged nations. Politically, both sides can pitch the release of American and Iranian citizens as a win for their countries. If this initiative sets the stage for a broader dialogue after the 2024 US presidential election, it can only be good for the Middle East and the world.