Biden Mulls Approval of Fresh $10 Billion for Iran
Sanctions Waiver: Funding Tehran’s Support for Hamas’s War on Israel
The Biden administration is on the verge of approving a sanctions waiver that would grant Iran access to over $10 billion in previously frozen funds held in Iraq. This decision comes just a month after the Tehran-backed terror group Hamas launched a devastating attack on Israel, resulting in the loss of 1,200 lives.
The waiver, set to extend the multibillion-dollar sanctions relief initially issued in July, allows Iraq to transfer frozen electricity payments into Iranian-owned bank accounts in Europe and Oman. However, concerns are mounting that this renewal is enabling the Biden administration to maintain financial avenues for Tehran, even as the country’s terrorist proxies continue to sow chaos across the Middle East.
“The world is living in a post-Oct. 7 world, but the White House is still running an Oct. 6 policy toward Iran,” says Richard Goldberg, a senior adviser at the Foundation for Defense of Democracies. Goldberg questions why Iran should have access to more than $10 billion after sponsoring a horrific terrorist attack and the worst massacre of Jews since the Holocaust. He argues that freezing all these accounts and keeping every penny out of Tehran’s hands would be a more sensible approach.
While the Biden administration halted a $6 billion ransom payment to Iran following pressure from Congress, the Iraq-Europe-Oman sanctions waiver suggests that the United States is still seeking to provide financial relief to the hardline regime. Iranian military officials have warned that the Gaza war has already spilled over into neighboring Lebanon and may escalate further, with Iranian-armed Hezbollah fighters becoming increasingly active in the conflict. Tehran has also been rallying Arab nations against Israel, threatening to prolong the war and open more fronts.
Under the Trump administration, Iraq was allowed to import electricity and gas from Iran, but the payments had to be kept in an escrow account in Baghdad. The Biden administration continued this waiver and expanded it in July, enabling Iraq to move over $10 billion outside the country, giving Tehran access to the funds for its budget and humanitarian needs. In late October, the governor of the Central Bank of Iran reportedly discussed expediting Iran’s access to the funds with his Omani counterpart.
During a congressional hearing, Richard Goldberg advised Congress to lock down the $10 billion as punishment for Tehran’s support of Hamas’s war on Israel.
The Biden administration maintains that, like the $6 billion held in Qatar, Iran can only use the $10 billion for non-sanctioned purposes. However, critics argue that since money is fungible, this access allows Iran to free up cash in other areas for illicit activities.
Republican lawmakers in Congress made this argument when pressuring the Biden administration to halt the $6 billion ransom payment to Iran. They claimed that although the money was intended for humanitarian purposes, it ultimately aided the hardline regime in diverting funds to terror groups like Hamas and Hezbollah.
In recent days, Iranian leaders have stressed the importance of the electricity payments, urging Omani leaders to expedite the use of these new foreign exchange resources. This indicates that the regime is relying on the Biden administration to continue freeing up this cash.
The State Department has declined to comment on the sanctions waiver or confirm whether it will be renewed this week.
What actions should the United States take to put increased pressure on Iran and its proxies
D over into a larger conflict, and with Tehran’s continued support for Hamas, the situation is becoming increasingly volatile in the region.
Allowing Iran access to these frozen funds raises serious concerns about the Biden administration’s commitment to countering terrorism and supporting its allies in the Middle East. It sends a message that the United States is willing to provide financial assistance to a country that sponsors terrorism and threatens the stability of the region.
Furthermore, it raises questions about the effectiveness of sanctions as a tool to deter and punish bad behavior. If Iran is able to access funds despite its support for terrorist organizations, it undermines the credibility of sanctions and gives Tehran the impression that it can act with impunity.
The Biden administration must reevaluate its decision to grant this sanctions waiver and consider the broader implications of its actions. Providing Iran with access to frozen funds will only strengthen its ability to support terrorist groups like Hamas and further destabilize the region.
Instead, the United States should be working with its allies to put increased pressure on Iran and its proxies. This includes imposing stronger sanctions, coordinating intelligence efforts to disrupt their operations, and supporting local partners in the fight against terrorism.
Additionally, the United States should be actively condemning Iran’s support for terrorism and holding the regime accountable for its actions. It is crucial for the international community to stand united against Iran’s destabilizing activities in the region.
The Biden administration has a responsibility to prioritize the safety and security of its allies, including Israel, and to combat terrorism in all its forms. Granting Iran access to frozen funds undermines these objectives and sends the wrong message to those who seek to do harm in the region.
It is time for the United States to take a strong stance against Iran’s support for terrorism and to reassess its policies regarding the release of frozen funds. The safety and stability of the Middle East depend on it.
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