The Biden administration ignited controversy last month when it released $6 billion in Iranian oil profits to secure the release of five American citizens imprisoned by the Islamic Republic.
However, the U.S. and Qatar have now decided to block Tehran's access to the funds.
Despite restrictions on the money, critics believed unfreezing it would help fund Tehran's proxy wars.
Iran has long supported the Palestinian Islamist terrorist group Hamas. Hamas and Hezbollah claim this week's deadly attack against Israel was planned with Iran's Revolutionary Guard Corps (IRGC). Tehran has dismissed those claims.
An investigation by the intelligence community is ongoing.
The New York Times has more:
U.S. officials said they had not seen intelligence that Iran had directly assisted with the assault and that some senior Iranian officials were taken by surprise. But Tehran has been a major backer of Hamas for decades, and opponents of releasing the funds said the fungibility of money meant the restrictions had little meaning.
It is unclear whether the Biden administration intends to cut off the funds permanently or may be taking an interim step as it gathers more information about Iran's potential ties to Hamas. It is also unclear whether the action reflects any new analysis by the administration about Iran's role in the attack. Regardless, it is certain to infuriate Iran's leadership after a painstaking prisoner swap that took many months to construct and weeks more to complete.
Speaking to reporters in Tel Aviv on Thursday, Secretary of State Antony J. Blinken would not confirm that Iran would be denied access to the account. But he noted that “none of the funds that have now gone to Qatar have actually been spent or accessed in any way by Iran.”
Under the terms of the prisoner deal last month, the money was transferred from South Korean banks, where it accumulated as Seoul purchased Iranian oil under an agreement with the Trump administration, which choked off most of Iran's energy exports. But Iran complained that those banks, fearful of being ensnared in U.S. sanctions, made it impossible to gain access to the money.
The Biden administration maintains that restrictions are in place to ensure that any funds released are only used for humanitarian trade. However, Iranian President Ebrahim Raisi told NBC's Lester Holt that his country would use the money as it pleases.
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So Sleepy Joe’s handlers finally woke him up and he decided to reverse a bad decision (at least for now).
Gee little massive pressure & Biden turns
“as it gathers more information about Iran’s potential ties to Hamas.”
How utterly damned stupid!!! They know exactly why how much and who is involved. This kind of rhetoric is strictly for fools who actually believe this rotten godless bunch stinking up our White House!