Biden administration refutes claims linking $6 billion in Iran prisoner swap to Hamas attack

The Biden administration recently rejected ties between the freeing of $6 billion funds during a prisoner swap with Iran and the unexpected disruptive attack by Hamas on Israel. This follows recent allegations by Republicans asserting a direct link between these events. 

Rumored Connection: A Prisoner Swap and Sudden Attack 

Republicans hastily suggested that the $6 billion fund, released as part of September’s prisoner swap with Iran, played a significant role in instigating the attack on Israel by Hamas militants. However, the Biden administration has aggressively counter-argued that these funds remain untouched. 

“Let’s be clear: the deal to bring U.S. citizens home from Iran has nothing to do with the horrific attack on Israel. Not a penny has been spent,” said State Department spokesperson Matthew Miller.

Origin and Current Location of the $6 billion 

The $6 billion fund in question originated from Iranian oil assets. These funds were previously held in South Korea, as payment for oil it purchased before the Trump administration imposed sanctions on such transactions in 2019. As part of the prisoner exchange deal, the U.S. facilitated the release of five innocent U.S. citizens detained in Iran, which included the transfer of these Iranian funds. Currently, the funds are held in restricted accounts in Qatar, according to Brian Nelson, Treasury’s top sanctions official. 

Despite Iran’s president stating he would decide how to spend the previously frozen funds, the Biden administration insists the money would only fund Iran’s purchases of humanitarian goods, like food and medicine. Any attempts made by Iran to redirect the funds would face stern action. 

“If Iran tries to divert the funds we’ll take action, and we’ll lock them up again,” warned John Kirby, National Security Council spokesman.

Republican Critics and Their Claims 

Many Republicans have voiced their disagreement over releasing the funds, alleging it enabled Iran to back the attack. The list of criticizers includes present presidential runners like Florida Governor Ron DeSantis and Vivek Ramaswamy. 

“To think that they’re not moving money around is irresponsible,” said Nikki Haley, former ambassador to the United Nations.

Critics like Haley and former House speaker Kevin McCarthy continue to push for the re-freezing of the funds, whereas the administration maintains a clear stance that the money is untapped. 

Hamas and its Ties to Iran 

As an Islamist militant group controlling the Gaza Strip, Hamas has a long relationship with Iran, which funds and provides weapons to it. This relationship is particularly concerning given the fact that Hamas is designated as a terrorist organization by the U.S. Iran’s annual contributions to Hamas and other terrorist groups amount to around $100 million, as mentioned in a 2021 State Department report. 

However, the U.S. administration has stressed that, so far, there is no concrete evidence linking Iran directly to the recent Hamas attack. 

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