More than 100 House Republicans have backed a bill to refreeze the $6 billion in Iranian oil revenue that was released last month as part of a prisoner swap deal.
The deal had many opponents among the Republicans from the onset. Some called it ‘ransom’ and warned that the regime in Iran may use it against US interests. But the Biden administration maintained that the funds were watched closely and could only be used for humanitarian purposes.
Once Hamas, a group supported by Iran, launched a terror attack on Israel, the opponents of the deal felt vindicated and took direct action.
“A month ago… the Biden Administration unfroze $6 billion and made it available to Iran,” said Congressman August Pfluger who introduced a bill to block Iran’s access to the fund. “This $6 billion will be used to backfill the money that Iran is paying to Hamas if we don’t act. Since the Administration refuses to permanently freeze the funds, Congress will.”
One day earlier, Treasury Secretary Janet Yellen had hinted that the funds could be frozen once more. John Kirby, spokesperson for the US National Security Council, did also suggest that the funds “can be re-frozen” at any time.
But neither statement satisfied the Republicans, it seems. They wanted an immediate and permanent ‘refreeze’.
Section 2 of the bill reads, “notwithstanding any other provision of law, on and after the date of the enactment of this Act, the President may not exercise the waiver authority…”
It’s not clear when this bill would be put to a vote. Republican Study Committee Chairman Kevin Hern who co-leads the bill with Rep. Pfluger said in a statement he will “work to get a vote on the House floor as soon as possible.”
The bill and the demands made by Republican senators highlight the deep divisions in Washington on Iran policy in general and the fate of the $6 billion, in particular.
With the 2024 election campaign well under way, President Biden may find it hard to devise a new policy, let alone implement it. He has been chasing some form of agreement with the Islamic Republic in the hope that it would curb the regime’s nuclear ambitions. But the Republicans may very well turn any such agreement into an attack line against the backdrop of the Hamas attack in Israel.
The Pfluger/Hern bill has wide support in the House and can be expected to pass. It will add to the pressure on Biden and his administration to refreeze the $6 billion fund even before the bill is enacted into law. The issue is that no one knows exactly what kind of a deal the administration has with Qatar over the money.
The Washington Post reported Thursday that a senior official from the US Treasury has informed House Democrats that the US and Qatar have agreed to deny Iran the use of the $6 billion fund even for non-sanctionable goods.
The unfrozen $6 billion was transferred from two South Korean banks to a Qatari bank with the State Department’s greenlight.
Asked about the Washington Post report, Secretary of State Antony Blinken, avoided a direct response. “We have strict oversight on the funds, and we retain the right to freeze them,” he said.
Iranian officials are yet to react to the movements in Washington aimed at refreezing the unfrozen fund.