Iranian President Ebrahim Raisi called on Japan on Tuesday to display its independence from Washington by releasing Tehran's frozen assets despite US sanctions.

"Japan should act independently from the US by releasing our blocked funds," Raisi said when asked by a Japanese reporter about $1.5 billion of blocked funds in Japan.

He then appeared to contradict himself, saying, "I must clarify that our Central Bank earlier said we only had unjustly frozen funds in South Korea. All other assets abroad are at the disposal of Iran's Central Bank.”

Tehran and Washington have reached an agreement in which five US citizens held in Iran will be freed in exchange for $6 billion of Iranian assets frozen in South Korea.

On August 10, Iran allowed four detained US citizens to move into house arrest from Tehran's Evin prison. A fifth was already under home confinement. They are expected to leave Iran when the money reaches accounts in Qatar.

The deal has led to sharp criticism and questioning by US lawmakers and many Iranian Americans, who say the Biden administration made a deal in secret and it is not clear what other concessions it has made to the Islamic Republic. Many critics also say that payment of ransom for hostages will endanger the lives of other Americans by emboldening the Iranian regime and other adversaries.

(With reporting by Reuters)