U.S. backtracks, blocks Iran’s access to $6bn after Israel attack: NY Times

The United States has blocked Iran’s access to $6 billion transferred out last month as part of a deal for the release five Americans held in Iran.

The New York Times reported Thursday that the U.S. and Qatar agreed to block Iran’s access to the funds amid criticism of the deal in the aftermath of the Hamas attack on Israel.

The newspaper cited a source who referenced a discussion between Wally Adeyemo, the U.S. deputy Treasury secretary, and ruling party members in the House of Representatives.

The deal

The U.S. announced in August that, in addition to also releasing five Iranians, it would allow Iran access the frozen money.

The money had been in South Korea. It was accumulated from Seoul’s purchase of oil from Iran during the Trump administration. South Korean banks afraid of violating U.S. sanctions did not send the money to Iran.

Attack

The deal came under criticism at the time, and it is now back in the spotlight because of Iran’s long-standing support of Hamas.

The Palestinian group launched an attack on Israel on Saturday and Israel responded with intensive bombing of Gaza. At least 2,400 people have died, about half on each side.

Following the attack, U.S. Republican lawmakers have accused the Biden administration of giving Iran access to a vast sum that freed up other funds for the country to provide support to Hamas.

U.S. officials say they have not seen evidence that Iran directly assisted Hamas with the assault.

Speaking to reporters in Tel Aviv on Thursday, Secretary of State Antony Blinken would not confirm that Iran would be denied access to the account. But he noted that “none of the funds that have now gone to Qatar have actually been spent or accessed in any way by Iran.”