Why $6 Billion US-Iran deal is under discussion after Hamas attack? More than 1,100 people were killed as a result of Hamas’s surprise attack on Israel on Saturday and Israel‘s response, which brought attention to the Iran-backed Islamist organization.
According to US Secretary of State Antony Blinken, Iran has not yet been able to spend any of the $6 billion in funds that were unfrozen as part of a September prisoner swap between the US and Iran.
Blinken additionally stated that he had “not yet seen evidence that Iran directed or was behind this particular attack, but there’s certainly a long relationship.”
Iran prisoner swap deal
Details of a convoluted agreement that President Joe Biden approved were made public in August. Six billion dollars in Iranian funds that had been frozen in South Korea were transferred in exchange for the release of five US citizens held by Tehran. Five Iranians detained in the United States were given permission to leave at the same time.
What was the $6 Billion?
Iranian funds totaling $6 billion were frozen in banks in South Korea. These Iranian oil export revenues were stopped in Seoul in 2019 after Washington, under the administration of the late President Donald Trump, completely banned oil exports from Iran and imposed sanctions on its banking system.
Iran did not receive any of the money. The funds, which are still in Doha, are under the control of Qatar’s central bank.
No US taxpayer money was utilized, according to the facts, Blinken said on Sunday’s “State of the Union” with CNN.
“These were Iranian resources that Iran had accumulated from the sale of its oil that were stuck in a bank in South Korea.”
According to the terms of the prisoner exchange agreement with Iran, the funds may only be used for humanitarian causes, such as importing food or other items, according to US officials.
The US Treasury’s undersecretary for terrorism and finance, Brian Nelson, said, “All of the money held in restricted accounts in Doha as part of the arrangement to secure the release of five Americans in September remains in Doha. Not a penny has been spent. These restricted funds cannot go to Iran – they can only be used for future humanitarian-related purposes. Any suggestion to the contrary is false and misleading.”
Because of due diligence requirements related to the swap, “It will take many months for Iran to spend down this money,” a State Department spokesperson said. “And, as we’ve said many times, it can only be used to purchase food, medicine, medical devices, and agricultural products for the people of Iran.”
Why $6 Billion US-Iran deal is under discussion after Hamas attack?
The majority of Republicans vying to be their party’s nominee for president in 2024 tried to connect the attacks to Biden’s Iran deal, with some even making the false claim that he or US taxpayers paid for the attacks against Israel.
According to Nikki Haley, a former governor of South Carolina and a Republican candidate for president in 2024, granting Iran access to those funds in any case helps Iran’s financial situation by freeing up money that could be used elsewhere.
“Let’s be honest with the American people and understand that Hamas knows, and Iran knows they’re moving money around as we speak because they know $6 billion is going to be released. That’s the reality,” she said.
