Cash will enable Tehran to ‘support more violence against Israel, the U.S., and our allies,’ Steil says
Rep. Bryan Steil, R., Wis. (Getty Images)
A Republican lawmaker is seeking information on the Biden administration’s recent decision to grant Iran access to $10 billion in previously frozen funds, warning the cash will enable Tehran to “support more violence against Israel, the U.S., and our allies.”
Rep. Bryan Steil (R., Wis.) is pressing the White House to justify its reauthorization last week of a sanctions waiver that allows Iran to access upwards of $10 billion in assets held outside the country, according to a copy of the lawmaker’s letter obtained by the Washington Free Beacon. Under the authorization, Iraq can pay Iran for multibillion-dollar electricity payments and move the money to third-party countries, which will allow the cash to be converted into euros, making it easier for Tehran to spend the money on humanitarian goods.
Critics of the sanctions waiver, including Steil, are concerned that by freeing up this cash for humanitarian purchases, such as food and medicine, the Biden administration has made it easier for Tehran to divert other funds into its global terrorism enterprise, which has significantly increased its attacks on Israel and U.S. positions in the Middle East since the Iranian-armed terror group Hamas launched its Oct. 7 war on the Jewish state.
There are also increasing concerns among Republican lawmakers and analysts that the Biden administration waived sanctions without safeguarding the cash from Iran’s expenditures on terror groups like Hamas and Hezbollah in Lebanon. Steil’s letter asks the Biden administration to explain why the $10 billion in assets are being moved into third-party countries like Oman, France, and Italy.
“The new waiver permits the conversion of the frozen funds into euros,” Steil writes. “This deviates materially from standard practice before 2023,” when former president Donald Trump was in office and granted a more narrowly tailored version of the sanctions waiver that ensured Iraq’s payments to Iran remained frozen inside the country in an escrow account. “I am gravely concerned that this expanded access will support more violence against Israel, the U.S., and our allies.”
“The timing of this waiver is exceptionally alarming,” Steil notes. “Iran has financed Hamas and other regional proxies, and reports indicate Iran’s continued investment in nuclear, missile, and drone programs.”
The State Department, in comments to the Free Beacon last week, said the waiver is necessary to ensure Iraq’s energy needs are met, and that the payments to Iran will only be spent on humanitarian goods.
“It is in the U.S. interest that this money leave Iraq and be spent down from Iran’s accounts held overseas,” a State Department official said at the time.
But Steil and other critics of the decision see the Biden administration opening up financial streams for Tehran at a time when it is fomenting chaos across the Middle East. The United States has not substantially altered its softline approach towards Tehran since Hamas slaughtered more than 1,200 Israelis in one of the most lethal attacks on Israel in recent memory.
“While I understand that Iraq has long had issues with its electricity supply, I still find your administration’s stated justification for this $10 billion waiver to be insufficient,” Steil wrote. “We have seen Iran-backed militias in Iraq and Syria escalate hostilities in recent weeks with over 61 attacks on U.S. troops in the region.”
Steil is pressing the White House to explain what safeguards are in place “to ensure these funds will be used solely for humanitarian purchases.” He also wants to know how the United States will “ensure that the fungibility of funds provided under this waiver will not enable Iran to redirect its existing resources towards terrorism or military activities.”
The lawmaker is raising additional questions about the administration’s legal justification for issuing the waiver. In its notice to Congress, the Biden administration said the Iranian funds should move to Oman, France, and Italy, claiming these countries need a pass from U.S. sanctions on the purchase of Iranian oil. However, it remains unclear why these countries in particular were selected.
“Because the mandated report to Congress did not address this issue,” Steil wrote, “please explain what ‘exceptional circumstances’ France, Italy, and Oman were facing that did not allow them to reduce purchasing petroleum from Iran.”
How does the Biden administration plan to address the concerns raised by lawmakers regarding the potential increase in violence against Israel, the U.S., and their allies as a result of granting Iran access to the frozen funds
Used for humanitarian purposes. The department also noted that the funds would be subject to strict oversight and monitoring to prevent any misuse.
However, Steil is not convinced and has raised several important concerns. He questions the decision to allow the funds to be converted into euros and moved to third-party countries like Oman, France, and Italy. This raises suspicions about the transparency and accountability of the process. Steil is worried that this move will make it easier for Iran to divert funds to support its global terrorism enterprise.
The concerns raised by Steil are valid given Iran’s history of supporting terrorist groups like Hamas and Hezbollah. He points out that Iran has recently increased its attacks on Israel and U.S. positions in the Middle East, especially since the start of the Hamas war on Israel. Allowing Iran access to a significant amount of funds, without proper safeguards, is a risky move that could further destabilize the region and harm U.S. interests.
Steil also highlights the timing of the waiver, which is exceptionally alarming. Reports indicate that Iran is continuing its investment in nuclear, missile, and drone programs. Given the ongoing concerns about Iran’s nuclear ambitions and its destabilizing activities in the region, providing Iran with additional funds raises serious questions about the Biden administration’s approach to dealing with Iran.
It is essential that the Biden administration addresses these concerns and provides a clear justification for its decision to grant Iran access to the frozen funds. Steil’s letter to the White House seeks clarification on why the funds are being moved to third-party countries and whether sufficient measures are in place to ensure that the funds will be used strictly for humanitarian purposes. The administration should also address the concerns about the potential for increased violence against Israel, the U.S., and their allies as a result of this decision.
In conclusion, the decision to grant Iran access to $10 billion in previously frozen funds raises valid concerns about the potential for the funds to be used to support violence against Israel, the U.S., and their allies. The Biden administration must provide a clear and comprehensive explanation for its decision and address the concerns raised by lawmakers like Steil. It is crucial to prioritize the security and stability of the region and ensure that the funds are used for their intended humanitarian purposes.
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