The Biden administration has come under fire for allowing billions of dollars to allegedly flow into Iran through a controversial sanctions waiver, despite recent attacks by Iranian-backed rebels against American forces and Israel. The waiver had been extended last month, enabling up to $10 billion in frozen funds to be unlocked for Iraq to pay the Iranian government for electricity services. This move was criticized by many and was renewed in March, just weeks after Iran-backed militants carried out a drone attack in Jordan that killed three US service members.
Last weekend, Iran launched a missile strike against Israel in response to an earlier airstrike in Damascus. The State Department defended the waivers, stating that the funds can only be used for humanitarian purposes and have not been sent directly to Iran. The White House also supported President Biden’s approach to Iran, highlighting US military efforts to thwart attacks and the imposition of over 500 sanctions on Iran since Biden took office. The waivers allowing Iraq to import Iranian energy have been in place since 2018, with the funds being held abroad and not directly benefiting Iran.
Some Republican lawmakers have raised concerns that the lack of transparency and accountability surrounding the funds may result in them being used for state-sanctioned terrorist activities in Iran. A group of senators, led by Tim Scott, wrote a letter to Treasury Secretary Janet Yellen and Secretary of State Antony Blinken calling for an end to these sanction waivers. They argued that making the funds potentially available to Iran does not serve US national security interests and could embolden the regime.
Deputy Treasury Secretary Adewale Adeyemo acknowledged that the funds could potentially be used for violent activities before reaching Iranians in need. Adeyemo testified that the Iranian regime prioritizes supporting violent activities over humanitarian aid for its people. In response to the recent missile and drone attack on Israel, some lawmakers accused the Biden administration of emboldening the Iranian regime through its sanctions policies. They criticized the administration for not taking a tougher stance on Iran and allowing the regime to become stronger financially.
National Security Council spokesman John Kirby defended the administration’s approach to Iran, citing the sanctions put in place and the resources deployed in the region. He argued that President Biden has not been soft on Iran and blamed the Trump administration for Iran’s advancements toward a potential nuclear weapon capability. Despite the recent attack on Israel, with the help of advanced missile defense systems, such as the “David’s Sling,” the vast majority of the missiles and drones launched by Iran were intercepted and did not reach the ground in Israel.
