In the midst of escalating tensions in the Middle East, a Biden administration policy has come under fire for freeing up an estimated $70 billion in funding for Iran.
Critics argue this move has emboldened the Islamic regime, which now threatens retaliation against Israel and the United States.
The newfound financial flexibility has coincided with increased aggression from Iran and its proxies. Recently, U.S. troops stationed at the Al Assad Airbase in Iraq were injured in an attack reportedly carried out by Iranian-backed militant groups.
This attack is seen as the first in a series of planned retaliatory actions by Iran in response to the assassination of Hamas leader Ismail Haniyeh in Tehran.
Iran’s Supreme Leader, Ayatollah Ali Khamenei, has vowed “harsh punishment” for Haniyeh’s assassination, further escalating tensions in the region.
In response to these developments, Biden administration officials are scrambling to deescalate the situation. Secretary of State Antony Blinken stressed the urgency of reaching a cease-fire in Gaza and called for all parties to refrain from escalation.
“We are engaged in intense diplomacy pretty much around the clock,” Blinken stated.
The current situation can be traced back to the Biden administration’s reversal of former President Donald Trump’s “maximum pressure” policy on Iran.
Biden’s approach aims to reintegrate Iran into the regional order established by the Obama administration’s Joint Comprehensive Plan of Action (JCPOA), commonly known as the Iran nuclear deal.
One of Biden’s first actions after taking office was to rescind U.N. sanctions reimposed by Trump after the U.S. withdrew from the nuclear deal.
Critics argue that this and subsequent policies have allowed Iran to continue its nuclear program, fund proxy militias, and threaten U.S. interests in the region.
Victoria Coates, former deputy national security adviser to Trump, asserts that the Obama-Biden Iran policies have provided the resources for Iran to fund its military activities.
“We know for a fact they would not because you can trace the money that they got under the Obama era nuclear deal, it went dollar for dollar into their, into their military activities. And as President Trump went through the maximum pressure campaign squeezed out that money, and we took them down to somewhere around 200-300,000 barrels [of oil] per day. They got below their ability to sustain themselves,” Coates stated in an interview on the “John Solomon Reports” podcast.
Coates explained that the financial windfall from lifted sanctions has significantly boosted Iran’s ability to sustain and expand its aggressive actions.
“And that was, of course, turned the other way, when Biden and Harris came in. They’re now over 2 million barrels a day. They’re 10 times what they were under President Trump. And guess what they’re spending that money on?” Coates added.
The Biden administration’s lax enforcement of oil sanctions has further increased Iran’s cash flow. Experts estimate that since Biden’s inauguration, Iran has gained an additional $32 billion in revenue due to these relaxed sanctions. Additionally, Iran’s non-oil exports have also surged, reaching their highest value ever in fiscal year 2023.
Further complicating the situation, President Biden’s administration brokered a deal with Iran, granting Tehran $6 billion to secure the release of five Americans who had been wrongfully imprisoned in Iran.
While the liberation of these individuals is a positive outcome, the decision to release such a large sum to a recognized adversary raises significant questions. Republican lawmakers argue that this move might embolden Iran to detain more foreigners, hoping for similar financial rewards.
Despite efforts to bring Iran back to the negotiating table on the nuclear deal, the regime has reportedly increased its stockpiles of near-weapons grade uranium.
According to an International Atomic Energy Agency report, Iran’s uranium stockpiles are now at a level that could produce several nuclear bombs, although the regime insists its nuclear program is for peaceful purposes.
The freed $70 billion in funds has not only bolstered Iran’s economy but also its capacity for regional aggression, leaving many questioning the long-term implications of the administration’s approach to Iran.