U.S., Qatar agree to stop Iran from tapping $6 billion fund after Hamas attack

Coming just a few weeks after the U.S. and Iran announced a deal on the money, the decision not to permit access could have major geopolitical reverberations, with the Biden administration undercutting negotiations with Tehran that took years to finalize. Biden aides had rejected the unfounded accusation that funds not yet released had fueled the Hamas attack, but they still faced a bipartisan backlash on Capitol Hill aimed at preventing the money from going to Iran.

The move reflects just how rapidly the Hamas massacre in Israel has reshaped U.S. relations in the region. As Israel pummels Gaza in retaliation, the Biden administration has reaffirmed its commitment to its allies, with Secretary of State Antony J. Blinken traveling to Israel in a show of support.

Further punitive measures against Tehran are possible. Treasury Secretary Janet L. Yellen suggested Wednesday that the U.S. is considering additional sanctions on Iran. While there has been no evidence of Iran’s direct role in the slaughter, U.S. officials say Hamas has received weapons and training from Iran, The Washington Post previously reported.

“The world just changed, and it changed because Iran has built a barbaric terrorist organization inside Gaza that just raped and murdered hundreds of Israelis,” said Sen. Chris Murphy (D-Conn.), a leading Democrat on the Senate foreign relations committee. Murphy added he has not discussed the matter with administration officials. “I don’t really care what the hardliners think. They have to understand the entire region is different today.”

Asked about the push to freeze the aid, Iran’s mission to the United Nations responded in a statement: “The money rightfully belongs to the people of Iran, earmarked for the Government of the Islamic Republic of Iran to facilitate the acquisition of all essential and non-sanctioned requisites for the Iranians.”