Support to Hamas feared? US blocks Iran's access to $6bn from prisoner swap deal
File photo of US President Joe Biden and Iran's Supreme Leader Ayatollah Ali Khamenei
The United States and Qatar have reportedly reached an agreement to restrict Iran from accessing the $6 billion transferred recently as part of a deal between Washington and Tehran that led to the release of five imprisoned Americans from Iran last month.
Wally Adeyemo, the deputy treasury secretary, informed House Democrats on Thursday (Oct 12) that Iran would no longer be able to access these funds.
Also read |US and Iran swap prisoners after Qatar-brokered deal unfreezes $6 billion of Iranian oil money
This development comes amid criticism, primarily from Republicans and former US president Donald Trump, who stated that the Biden administration's move allowed Iran to free up other funds for potential support to Hamas, and enabled the weekend's deadly attack on Israel by the Gaza-based militant group.
While Biden administration has stated that there is no direct evidence of Iranian involvement in Hamas attack on Israel, Tehran's longstanding backing to Hamas as well as Lebanon-based Hezbollah have raised questions on the credibility of Biden administration's clean chit to Iran in relation to the ongoing state of war in Israel.
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What next?
It remains unclear whether the Biden administration intends to permanently cut off these funds or is taking an interim step to gather more information about Iran's potential connection with Hamas' latest offensive against Israel.
Also watch |US unlocks $6 billion for prisoner swap with Iran; US-Iran financial transactions under close watch
However, the decision is expected to upset Tehran since the prisoner swap process has already concluded.
US Secretary of State Antony Blinken did not confirm the denial of access to the funds to Iran. Blinken, however, pointed out that the money transferred to Qatar had not been accessed or spent by Iran.
The money was originally transferred from South Korean banks as part of the prisoner exchange agreement. However, Iran faced difficulties accessing it due to concerns about US sanctions. As part of the deal, the funds were shifted to banks in Qatar to allow Iran to use them.
What is the bottom-line?
The latest development reflects a change in the Biden administration's stance after its previous assertions that these funds were not being used by Tehran to support Hamas' attack on Israel.
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