As tensions in the Middle East escalate following recent hostilities involving Hamas and Israel, the Biden administration is contemplating the possibility of re-freezing $6 billion in Iranian oil funds. These funds had been previously released as part of a prisoner exchange deal, but growing criticism from both sides of the aisle has prompted a reassessment of this decision.
An unnamed U.S. official revealed on Wednesday that intelligence agencies currently lack evidence pointing to Iran’s direct involvement in the recent military attack or prior knowledge of Hamas’s plans. However, it is believed that Iran was aware of some of Hamas’s intentions against Israel. This uncertainty has raised concerns about the release of the $6 billion, as some lawmakers are pushing for its re-freezing.
Janet Yellen, the U.S. Treasury Secretary, stated on Wednesday that the administration does not rule out the possibility of imposing new sanctions on Iran. She emphasized that they “would not hesitate to take future actions.”
John Kirby, the spokesperson for the National Security Council, indicated on Tuesday during an interview with MSNBC that the $6 billion could be “re-frozen” at any time. He explained that none of the funds have been allocated or spent, and they remain in a Qatari bank, presenting an available option.
This issue has also become a focal point in the campaigns of current Democratic candidates running for election in swing states, particularly those that supported former President Donald Trump in the 2020 election. Four candidates, including the Chairman of the Senate Banking Committee, have expressed their support for keeping the assets frozen until Iran’s role in the attacks on Israel is clarified.
Global markets are closely monitoring the potential ramifications of these sanctions on oil and energy markets. With mounting concerns about supply disruptions, there is a possibility of increased oil prices in the near future. The situation continues to evolve, with significant implications for international relations and energy markets.