In a recent development, the United States and Qatar have agreed to prevent Iran from accessing $6 billion that was transferred to the nation as part of a deal between Washington and Tehran. The funds were initially transferred to Qatar from South Korean banks, where they had accumulated as a result of Seoul purchasing Iranian oil under an agreement with the Trump administration. However, Iran complained that the fear of being ensnared in U.S. sanctions made it impossible for them to retrieve the money. In exchange for the release of five imprisoned Americans from Iran, the funds were shifted to banks in Qatar to allow Iran to access them.

The decision to deny Iran access to the funds comes after intense criticism from mainly Republican critics, who accused the Biden administration of providing Iran with a vast sum of money that could potentially be used to support Hamas. However, U.S. officials have clarified that the money was under close supervision and strict conditions, with the requirement that it be used only for humanitarian purposes. While the U.S. officials did not describe the funds as permanently frozen, they stated that case-by-case applications to spend the money under the current arrangement will be denied for the foreseeable future.

The move seems to be a reversal by the Biden administration, as they had previously insisted that the money was not relevant to the recent Hamas attack on Israel. However, critics argued that the fungibility of money meant that the restrictions had little meaning, as Iran has been a major backer of Hamas for decades. Despite not directly assisting with the assault, some senior Iranian officials were taken by surprise. The Treasury Department, which oversees the funds, has a quiet understanding with Qatar that Iran will be unable to retrieve the money, although it remains unclear whether the funds will be declared permanently off-limits.

Secretary of State Antony J. Blinken did not confirm that Iran would be cut off from the account but pointed out that none of the funds had been spent or accessed by Iran. Similarly, White House spokesman John F. Kirby declined to confirm the decision but emphasized that Iran had not received any of the $6 billion. He stated that the money, if accessed, would go to vendors providing humanitarian goods and would be subject to oversight by U.S. authorities.

The decision to deny Iran access to the funds is likely to infuriate Iran's leadership after the painstaking prisoner swap that took months to construct and complete. In response, Iran's mission to the United Nations in New York City denounced the move and stated that the money rightfully belongs to the people of Iran, earmarked for the government to acquire essential and sanctioned requisites for Iranians.

The Biden administration's recent approach toward Iran has become a target for Republicans, who accuse President Biden of providing a lifeline to Iran's anti-American government. Despite the restrictions on the funds, critics argue that other funds that may be freed up could still be used by Iran to support Hamas. However, U.S. officials maintain that the funds can only be used for medical supplies, food, medicine, and other humanitarian goods, and that they have retained strict oversight to ensure compliance.

Overall, the denial of access to the $6 billion in Iranian funds represents a significant development in the US-Iran relationship and may further strain diplomatic efforts between the two nations.