U.S. Launches Quiet Diplomatic Push With Iran to Cool Tensions

The Biden administration has quietly restarted talks with Iran in a bid to win the release of American prisoners held by Tehran and curb the country’s growing nuclear program, people close to the discussions said.

As contacts between the two sides resumed, Washington also approved 2.5 billion euros, equivalent to $2.7 billion, in payments by the Iraqi government for Iranian electricity and gas imports, U.S. and Iraqi officials said. The money had been frozen by U.S. economic sanctions.

U.S. officials described the transfer of funds as routine and unrelated to the...