A recent disclosure has shed light on the Biden-Harris administration's decision to lift sanctions on Iran, a move that has allowed Tehran access to an estimated $10 billion in previously frozen funds.
This revelation, which came to light three days post the November election, has sparked a wave of controversy. The decision was justified by Secretary of State Antony Blinken on November 8, who stated that the waiver of the economic sanctions, which had previously barred Iraq from transferring over $10 billion to Iran for electricity import payments, was "in the national security interest of the United States." This information was unveiled to Congress via a confidential order, as reported by the Washington Free Beacon.
According to The Post Millennial, the Biden-Harris administration has consistently renewed this waiver, despite the vocal objections of congressional Republicans. The latter group has raised concerns that these funds are being funneled into terrorist activities and are fueling Iran's ongoing conflict with Israel. The administration's approval of the sanctions relief, notably a month after Hamas's attack on Israel on October 7, 2023, has further fueled these concerns. The most recent waiver, which suspends sanctions for 120 days, leaves the incoming Trump administration with the task of deciding whether Tehran will continue to benefit from this relief.
While the initial Trump administration had also approved a similar waiver, it had put in place conditions to restrict Iranian access to these funds. However, the Biden State Department last year altered the waiver to allow Tehran to convert the funds from Iraqi dinars to euros, and subsequently deposit these euros into Iranian bank accounts in Oman. This is a significant departure from the Trump administration's policy, which required Iran to keep the funds in an escrow account in Baghdad, thereby limiting its accessibility. Now, with access to the euro, a widely traded currency, Iran can more easily utilize its funds in international markets.
In a press briefing, State Department deputy spokesman Vedant Patel addressed the issue, stating, "We remain committed to reducing Iran's malign influence in the region. Our viewpoint is that a stable, sovereign, and secure Iraq is critical to these efforts." This statement, however, does little to assuage the concerns of those who view the waiver as a potential threat to regional stability and security.
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