The United States has taken steps to release a 450-million-U.S. dollar installment of Iran's frozen funds as part of an interim deal on Tehran's nuclear program, the State Department said on Thursday.

The United States took the move after a report from the International Atomic Energy Agency confirmed that Iran has completed the dilution of the agreed amount of 20 percent enriched Uranium, as stipulated in the deal it reached with world powers in November.

As Iran "remains in line with its commitments" under the deal, the United States and its partners "will continue to uphold our commitments as well," State Department spokeswoman Marie Harf said at a press briefing.

Under the deal it reached with the U.S., Britain, France, China, Russia and Germany, Iran would halt its controversial nuclear program in exchange for an easing of sanctions that had crippled its economy.