Trump says Iran freed US citizen held since December 2024

President Trump said Iran released a wrongfully detained American citizen, a claim Tehran swiftly denied, injecting fresh uncertainty into already strained US-Iran relations.

President Trump said Wednesday that Iran released a US citizen wrongfully detained since December 2024, a "gesture of Goodwill" that Tehran immediately denied, deepening confusion over the fate of Americans held in the country.

"She is now safely outside of Iran, and in good condition," Trump wrote on Truth Social, adding that the US "appreciates this gesture of Goodwill by Iran." The woman was identified by her lawyer Jared Genser as Dena Karari, a dual US-Iranian citizen who had been barred from leaving the country on espionage charges.

Iran's government pushed back hours later, stating that after verification, no US citizen matching Trump's description had been released from its prisons and no prisoner exchange had occurred. Karari, who worked for a US technology company and ran a charity for children in Iran, was first detained in December 2024 and charged with espionage after the US joined Israel in bombing Iran in 2025, according to the New York Times. She suffered a heart attack on July 8, two sources told CBS News.

The conflicting accounts come as the US and Iran exchange strikes for a fifth straight day, with Trump reinstating a naval blockade on the Strait of Hormuz — through which 21% of global oil trade passes. The contradictory narratives risk amplifying uncertainty in oil markets already pricing in a heightened risk premium, with any sign of diplomatic progress or further escalation capable of moving crude prices.

The James W. Foley Legacy Foundation says at least two US nationals are currently being wrongfully detained in Iran. Karari's name was on a list of Americans that the State Department had given to US special envoy Steve Witkoff to press for her release, two sources told CBS News. Her lawyer Genser, a human rights attorney who has helped free over 340 prisoners of conscience from 20 countries, said her release "would not have happened but for the extraordinary and relentless efforts of President Trump."

The last time a US citizen was released from Iranian custody came in a September 2023 prisoner swap that saw five Americans freed in exchange for the transfer of $6 billion in frozen Iranian assets to Qatar. That deal, negotiated under the Biden administration, also involved the release of several Iranian nationals held in the US. The current standoff lacks any comparable framework, with the two countries engaged in active military exchanges.

For oil markets, the key variable is whether the release signals a potential off-ramp in hostilities or a one-off gesture with no broader diplomatic significance. Brent crude has remained elevated as traders weigh the risk of supply disruptions through the Strait of Hormuz, which Iran has threatened to close in previous confrontations. The US naval blockade, which Trump said would stop "only Iran's ships or customers from entering or leaving," adds another layer of complexity to an already volatile situation.

A recent Economist/YouGov poll found 55% of US respondents said the US should stop attacking Iran, showing the domestic political pressure on the administration. Trump said Tuesday he was not aiming for negotiations with Tehran at the moment, calling the Iranian government "evil" in a Fox News interview.

This article is for informational purposes only and does not constitute investment advice.