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U.S. officials and the Qatari government have agreed to prevent Iran from accessing a $6 billion humanitarian aid account in light of Hamas’ attack on Israel, Deputy Treasury Secretary Wally Adeyemo told House Democrats Thursday, according to two people who spoke on condition of anonymity to describe the private comments.
The decision not to allow access to the money comes just weeks after the U.S. and Iranian governments announced an agreement to establish humanitarian aid as part of a prisoner swap aimed at easing hostilities in the region. U.S. officials had to approve every transaction under the agreement. The fund is financed by Iranian oil sales.
Hamas has received weapons and training from Iran, officials say
But President Biden faced increasing bipartisan pressure on Capitol Hill to block Iran’s use of the funds amid scrutiny over Tehran’s ties to Hamas. US officials say Hamas received weapons and training from Iran, but there is no evidence of direct Iranian involvement in the massacre, The Washington Post previously reported.
Adeyemo told House Democrats that the money “isn’t going anywhere any time soon,” according to three House Democratic aides who spoke on condition of anonymity to describe internal conversations. This comment was first reported by Punchbowl.
Senators from both parties, including Senate Banking Committee Chairman Sherrod Brown (D-Ohio), have called on the Biden administration to withdraw from the agreement.
Asked about the move to freeze aid, Iran’s mission to the United Nations responded in a statement: “The relevant senators and the US government are all fully aware that they CANNOT withdraw from the agreement. The money rightfully belongs to the people of Iran and is intended for the government of the Islamic Republic of Iran to facilitate the purchase of all essential and non-sanctioned basic needs by Iranians.”
Withdrawing aid would embolden hardline voices in Iran that have rejected cooperation with the West, said Trita Parsi, executive vice president of the Quincy Institute for Responsible Statecraft, a foreign policy think tank. Parsi also speculated that such a move could shift opinion within the regime in favor of building a nuclear bomb.
“If this step is taken, this status quo will collapse – and it will have a very detrimental impact on the internal discussions in Iran and within the regime,” Parsi said. “If there is no prospect of a deal with the US, it will likely lead Iran to build a bomb – and that would be an extremely dangerous situation.”
Iran’s supreme leader, Ayatollah Ali Khamenei, has declared nuclear weapons forbidden by Islam and vowed that Iran will never attempt to build or acquire them.