The outgoing Biden-Harris administration granted $10 billion in sanctions relief to Iran just days after Donald Trump secured victory in the 2024 presidential election. This decision, which allowed Iraq to transfer funds to Iran, has drawn criticism due to Tehran’s ongoing support for terrorist groups and attacks against Israel.
The Biden State Department justified the waiver, stating it permits Iran to use the funds exclusively for humanitarian purposes, such as medicine and essential supplies. However, Republican lawmakers argue that money is fungible, enabling Iran to reallocate resources to regional proxies, including Hamas, Hezbollah, and the Houthi rebels. The latter group has escalated attacks on global shipping in the Red Sea and fired ballistic missiles at Israeli cities.
This waiver followed a separate $6 billion sanctions relief earlier in the Biden administration, which the United Nations linked to increased Iranian backing of Houthi rebels. Critics note the timing and breadth of the recent waiver, contrasting it with a similar policy under Trump. The first Trump administration allowed Iraq to pay Iran for electricity but imposed strict controls, requiring funds to remain in escrow accounts in Baghdad. These measures restricted Iran’s ability to convert the funds or spend them freely.
Under Biden, the terms were expanded. The funds can now be converted from Iraqi dinars to euros and held in Oman-based accounts, providing Tehran greater flexibility for international transactions. Critics contend this shift increases the likelihood of misuse, strengthening Iran’s capacity to fund militant activities across the region.
The move has intensified scrutiny of Biden’s approach to Iran, particularly given its direct support for groups hostile to U.S. allies, including Israel.
