The United States has informally agreed with Qatar to Delay in disbursing $6 Billion in oil revenue meant for Iran as part of a prisoner exchange. This decision comes as the Biden administration investigates Iran’s potential involvement in a recent Hamas attack on Israel.
The Treasury Department has reached an understanding with Qatar, which was responsible for distributing the funds, not to approve applications for the money. These funds were intended for Iranian organizations to purchase medicine and humanitarian supplies. Deputy Treasury Secretary Wally Adeyemo briefed congressional Democrats about this decision.
The $6 billion in oil sales revenue had been transferred from South Korea to Qatar as part of a September agreement. This agreement aimed to exchange U.S. citizens held in Iranian prisons for several Iranians imprisoned in the United States.
The U.S. Treasury Department has not yet provided a comment on this matter. Secretary of State Antony Blinken mentioned that none of the money has been spent as of now. This news was first reported by Punchbowl News.
Blinken clarified, “The Treasury Department is in charge of that account’s funds, which are only allowed to be used for humanitarian purposes (food, medicine, medical supplies, etc.) and never come into contact with Iranian nationals. We maintain tight control over the money and the authority to put it on hold.”
However, Iran has stated that it still has access to the funds. According to Iran’s state-run Nour News, “There has been no change in the issue of Iran’s access to its FX funds in Qatari banks.”
On Wednesday, a U.S. official stated that intelligence agencies do not have any evidence to confirm that Iran directly ordered the attack that resulted in the death of over 1,200 Israelis. However, the agencies do suspect that Iran might have been aware of Hamas planning some form of action against Israel. The official discussed this sensitive intelligence while remaining anonymous.
The issue of the frozen assets has become a topic in the campaigns of Democratic incumbents, particularly those running in swing states or states that supported former President Donald Trump in the 2020 election. Four candidates, including the chairman of the Senate Banking Committee, have expressed their support for keeping these assets frozen until Iran’s involvement in the attacks on Israel can be determined.
Democratic Senator Sherrod Brown of Ohio emphasized the need for Congress to prioritize providing substantial military, economic, and humanitarian aid to assist Israel in defending itself against Hamas’s terrorist attack. He said, “As we work to hold anyone who supports terrorism accountable, the administration must freeze the $6 billion in Iranian assets.”
