The Game-Changing Potential: How Iran Can Leverage $6 Billion for Global Diplomatic Triumphs

The Iranian government has received $6 billion of their funds for humanitarian purposes, as part of a broader agreement that facilitated the release of five imprisoned Americans in Iran. The money, previously held in restricted accounts in South Korea, has now been transferred to restricted accounts in Qatar through European banks. On Monday, officials from Iran and the US were informed by Qatar that the transfer has been successfully completed, as per a knowledgeable source.

The Iranian government asserts its ability to utilize the funds as it sees fit, but the Biden administration has consistently emphasized that the money is strictly intended for non-sanctionable purposes such as food and medicine. Additionally, they have emphasized the implementation of stringent oversight. Furthermore, US officials have explicitly stated that the funding, originating from Iran and not from US taxpayer dollars, is not within the control of the Iranian government.

Republicans have promptly voiced their disapproval of the agreement, asserting that the money transfer is adversely impacting America's reputation globally and may tempt US adversaries to unjustly detain American citizens.

John Kirby, the White House coordinator for strategic communications, emphasized that this achievement is solely attributed to extensive and arduous efforts made by our diplomats, specifically those at the State Department.

What the $6 billion is and how it is supposed to be used

The funds available to Iran under the deal consist of Iranian funds that have been held in restricted South Korean accounts. Sources informed CNN that these funds originated from permitted oil sales and were placed into accounts established during the Trump administration.

The Iranian government can now access the money to buy non-sanctioned goods like food and medicine. However, the US clarifies that the funds will not be completely controlled by the Iranian government and will not be held in Iranian banks.

After four out of the five Americans were transferred from Evin Prison to house arrest last month, the transfer of funds from the South Korean accounts began. Secretary of State Antony Blinken recently granted a waiver permitting European financial institutions to safely move the money to Qatar without facing US sanctions.

The Iranian government could not access those funds until US officials confirmed the arrival of the five Americans in Doha, according to US government officials familiar with the matter. Iranian President Ebrahim Raisi's claim that his government will determine the spending of the $6 billion frozen assets was declared incorrect by Kirby.

"This is not any form of payment, it is not a ransom, these are not funds from US taxpayers, and we have not removed any of our sanctions on Iran - Iran will not receive any relief from sanctions," stated Kirby. "We will continue to counter Iran, their human rights abuses, their destabilizing actions abroad, their support for terrorism, attacks on maritime shipping in the Gulf, and their continued support for Russia's war against Ukraine."

"The Iranian government is essentially telling its people what they want to hear. Raisi's remarks were completely unfounded," commented a senior official from the State Department. "However, we are aware of the truth, and therefore we have confidence in this statement."

How the US says it is conducting oversight

Biden administration officials have stressed each transaction using the funds will be monitored by the US Treasury Department.

The senior administration official stated that the establishment of a humanitarian channel in Qatar is being implemented to prevent money laundering and ensure proper use of the funds. Kirby mentioned in his previous statement that the money will be deposited in the Qatari National Bank and can be withdrawn upon request from the Iranian government.

"The Iranians have the option to request withdrawals for humanitarian purposes. With thorough oversight, we will carefully evaluate these requests to ensure their validity before providing the appropriate funds. Subsequently, the allocated funds will be utilized by qualified vendors to purchase and distribute essential supplies like food and medical resources directly to aid organizations or relevant entities within Iran. This way, the Iranian people will directly benefit from the assistance."

Kirby emphasized on Monday that the United States has the ability to prevent a transaction from occurring if required. US officials have also emphasized that in the event of any misuse of funds, they hold the authority to freeze the associated accounts.

According to a senior administration official, "Should Iran attempt to redirect the funds or utilize them for purposes beyond the authorized limited humanitarian use, we will take necessary measures to secure the funds."

The terms of the agreement imposed on Iran are deemed "humiliating" by Trita Parsi, the executive vice president of the Quincy Institute based in Washington, DC, according to an interview with CNN. Parsi suggests that the US administration is wary of being perceived as being lenient towards Iran and, as a counterbalance to securing the release of Americans, is implementing additional sanctions and taking actions that project a tough image.

What the criticisms are

The recent transfer was met with criticism from Republican Sen. Tom Cotton of Arkansas, who argued that the key to preventing hostage situations with Iran is through a strong, firm, and resolute approach. According to Cotton, instead of offering incentives in the form of $6 billion, it is more effective to utilize deterrents in the form of threats.

Former Vice President Mike Pence, who oversaw two prisoner swap deals with Tehran during his time in the White House, is expected to deliver a speech later on Monday, where he will criticize the recent deal. A senior Pence campaign official stated that Pence will argue that China could potentially take advantage of the United States, especially after observing the actions of the Biden administration towards its adversaries. The deal with Iran will serve as one of Pence's examples of what he refers to as the "posture of weakness" displayed by the current administration.

Additionally, last month, 26 Senate Republicans, led by Senator Tim Scott, a presidential hopeful, wrote a letter to Secretary of State Antony Blinken and Treasury Secretary Janet Yellen, expressing their disapproval of the deal.

"We strongly advocate for the utilization of all suitable measures by the United States to ensure the liberation of American citizens unlawfully held in foreign countries. However, this verdict will establish an extremely perilous precedent and empower the Iranian regime to amplify its disruptive actions throughout the Middle East," conclude the senators.

Additionally, they raise doubts about the possibility of this arrangement being a component of a broader scheme to formulate a fresh nuclear agreement with Iran - a concept staunchly refuted by the administration, emphasizing their perception of the nuclear matter and the detainee matter as completely distinct.

"We are concerned about your administration's efforts to bypass Congress and explore alternative methods of providing financial compensation to Iran while seeking to renegotiate a replacement for the unsuccessful 2015 nuclear agreement," they expressed. "Any deal with the Iranian government that includes rewarding their destructive actions is completely unacceptable."