Why would the Biden administration transfer billions of dollars to Iran? Two days after Donald Trump won back the White House on Nov. 5, Secretary of State Antony Blinken announced the United States would continue to waive sanctions against Iran, which would permit Iran to continue selling electricity to Iraq.
The current White House resident is decidedly tone-deaf to the reality that any cash given to Iran funds terrorism or, equally as dangerous, Iran’s nuclear program. Congress is not happy with the Foggy Bottom’s persistent desire to help Iran.
Iran Counting Biden Bucks
In March 2024, four chairmen of key subcommittees wrote to Secretary of the Treasury Janet Yellen and Secretary of State Antony Blinken, expressing their deep concern regarding their belief that funds provided to Iran through the lax Biden Iran policy helped to fund Hamas’ attack on Israel. In September 2023, “[T]he Administration authorized the transfer of over $6 billion worth of Iranian funds from South Korea to a Qatari bank, as a part of a hostage deal that many viewed as tantamount to ransom. Later … Hamas conducted a devastating attack on Israel.”
The Biden administration has a long history of making every accommodation to the Tehran government. Whether it’s paying a $6 billion ransom for the return of US citizens held as hostages by Iran or easing economic sanctions, the Biden national security posture has been to appease the Iranian mullahs.
In a Dec. 3 press briefing, State Department spokesman Vedant Patel told reporters:
“On Nov. 7, the department did renew Iraq’s electricity waiver for the 23rd time since 2018. It was done so for an additional 120 days. We remain committed to reducing Iran’s malign influence in the region. Our viewpoint is that a stable, sovereign, and secure Iraq is critical to these efforts. Since 2018 – as you know, this started in the previous administration – the State Department has permitted Iraq to purchase Iranian electricity while Iraq continues to develop its own domestic generation capacity.”
The impression Patel tried to convey was that the Blinken State Department was just continuing what the Trump administration had started in 2018. That’s not accurate. It’s true that the Trump administration waived sanctions for Iraq to buy electricity from Iran. However, the sanctions were originally imposed with safeguards to prevent Iran from obtaining cash for the sale of electricity to Iraq. The Baghdad government in 2018 was desperate for electrical power, and sanctions were temporarily lifted to allow Iraq to buy electricity from Iran.
Trump’s Approach Was Different
However, unlike the Biden approach, Trump placed strict limitations on the transactions. No cash could be involved. “The sanctions waiver policy was instituted … but on the strict condition that Baghdad would not pay Tehran in cash and that the funds could only be used for humanitarian purposes, according to the [Washington Free] Beacon. The Biden administration continued this policy, but in 2023 allowed the funds to be transferred to a bank in Oman to be doled out [in cash] to Iran,” The Daily Caller explained. Though the money is supposed to be used for humanitarian purposes, only the most naïve observer and members of the Biden administration would believe Iran would not use the funds for other purposes.
In a recent interview on Fox News, the nominee for Treasury Secretary, Scott Bessent, offered an indication of what to expect in this situation come Jan. 21. “President Trump is going to make Iran broke again,” Bessent quipped. For those suffering under Iran’s outreach of terror, that prediction cannot come soon enough.
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