US Re-Freezes Iran Oil Export Payments... Launches Diplomatic Campaign to Isolate Hamas

The United States has re-frozen approximately $6 billion (about 8 trillion won) in oil export payments from Iran, which is mentioned as the backer of Hamas, the group that attacked Israel. This comes just weeks after the two countries agreed to return the frozen Iranian oil export funds to South Korea during prisoner exchange negotiations. The U.S. has reaffirmed its support for Israel and has officially launched a major diplomatic campaign in the Middle East to isolate Hamas and Iran.

[Image source=EPA Yonhap News]

According to the Washington Post (WP) and the New York Times (NYT), Wally Adeyemo, U.S. Deputy Secretary of the Treasury, told House Democrats on the 12th (local time) that the U.S. and Qatari governments have agreed to prevent Iran from accessing $6 billion deposited in a Qatari bank. Deputy Secretary Adeyemo said, "Iran will no longer have access to the funds," adding, "The money is not going anywhere." Iran is known to have long supported Hamas.

Previously, the U.S. had lifted the freeze on Iran's oil export payments under the promise that the funds would be used solely for humanitarian purposes and transferred the money to a Qatari bank as part of prisoner exchange negotiations. However, after the Palestinian militant group Hamas launched a surprise attack on Israel, criticism of the Biden administration's conciliatory policy toward Iran intensified, especially among Republicans, along with concerns that the funds could be used to support terrorist organizations. The Biden administration argued that Iran had not spent any of the money yet and could re-freeze the funds at any time, but as even Democratic lawmakers joined the criticism, the administration ultimately took action.

It is unclear whether the Biden administration will permanently freeze the funds. It is also unknown whether this move is based on confirmed signs that Iran is behind Hamas. U.S. officials have so far stated that there is no clear intelligence indicating Iran's involvement in Hamas's recent surprise attack.

However, the NYT analyzed that this move will certainly infuriate the Iranian leadership, who had been engaged in prisoner exchange negotiations for months. The WP also predicted that the Biden administration's breaking of the hard-won agreement and re-freezing of the funds could cause significant geopolitical repercussions. The Iranian mission to the United Nations issued a statement saying, "The United States cannot withdraw from the agreement," and protested, "The funds are rightfully the property of the Iranian people and have been designated for the Iranian government to purchase approved essential goods for the Iranian people that are not subject to sanctions."

[Image source=Reuters Yonhap News]

Amid rising geopolitical risks in the Middle East, the U.S. reaffirmed its support for Israel. With an Israeli ground operation in the Gaza Strip expected to begin soon, U.S. Secretary of State Tony Blinken visited Israel on the same day and met with Prime Minister Benjamin Netanyahu. Immediately after the meeting, he said, "I stand before you not only as the U.S. Secretary of State but also as a Jew, a husband, and a father," adding, "The United States will always stand with Israel."

Following Israel, Secretary Blinken plans to visit Jordan, Qatar, Saudi Arabia, the United Arab Emirates (UAE), and Egypt to meet with leaders of these countries. This is seen as a diplomatic campaign aimed at isolating Hamas and Iran, which is identified as its backer, throughout the Middle East. Notably, Secretary Blinken confirmed that he will also meet with Mahmoud Abbas, the relatively moderate leader of the Palestinian Authority, which controls parts of the West Bank. This signals that the U.S. intends to differentiate its response between Hamas, which launched the brutal surprise attack on Israel, and other Palestinian factions. He said, "Through all these efforts, we will continue to urge countries to use their leverage over Hamas to help prevent the conflict from spreading and to ensure the immediate and unconditional release of hostages."

Following Secretary Blinken, U.S. Secretary of Defense Lloyd Austin is scheduled to visit Israel the next day. Secretary Austin is expected to meet with Israel's Defense Minister and other cabinet officials to discuss Israel's operational plans, objectives, and security assistance. The U.S. has already provided ammunition to Israel and deployed the Gerald R. Ford carrier strike group, the world's largest nuclear-powered aircraft carrier, to the region.

This content was produced with the assistance of AI translation services.