An international leader in providing financial support to terrorist organizations may soon have access to $10 billion after the Biden administration extended its sanctions waiver on Iran over the sale of electricity to Iraq. This exemption, which Iran may use to collect power payments from Iraq through third-party companies, was last extended in November and will expire later this month. In light of the recent attacks on Israel by Hamas and Hezbollah, as well as the Houthis of Yemen in the Red Sea, Republicans have voiced their disapproval of President Joe Biden’s approach toward Iran. The Biden administration maintains that the lifted sanctions allow Iran to receive funds for humanitarian causes; however, Republicans contend that “money is fungible,” meaning that Iran can divert these funds to support terrorists and proxies who oppose Israel in the volatile Middle East.
According to Richard Goldberg, a former White House National Security Council member, the Iranian sanctions waiver proposed by Biden was a red flag. During the Gaza war, with Iran supporting Hamas, the decision has been made, allowing Iraq to pay back Iran the estimated $10 billion it owes, which has been frozen due to US sanctions. The Biden administration will carefully scrutinize any funds given to guarantee that they will only be used for humanitarian and “non-sanctionable” necessities like food and medication in Iran. Although this fund has been carefully reviewed, its detractors argue that money is interchangeable and that other funds may be utilized for harmful purposes.
Hours after the revelation, lawmakers on Capitol Hill began to show indications of outrage. Republicans in Congress call Joe Biden’s stance toward Iran “appeasement,” and they claim that it has given the Iranian government more confidence to pursue its nuclear program and go after US interests in the area. Underscoring the administration’s urgency in safeguarding Iraq’s vital oil supply, the US Secretary of State signed the Iraq waiver on Tuesday. Some think the Biden administration is trying to hide something by labeling the waiver as something else.
