Iran Rejects US Restrictions On Unfrozen Funds Usage

Iranian President Seyyed Ebrahim Raisi has asserted that the United States lacks the authority to oversee Tehran’s utilization of $6 billion in oil funds, which were unfrozen as part of a prisoner-exchange agreement between the two nations.

“This money belongs to the Iranian people and the Iranian government, so the Islamic Republic of Iran will determine its usage,” Raisi stated during an interview with NBC News. When asked if the funds would be directed toward humanitarian purposes, as per Washington’s request, he responded, “Humanitarian means whatever the Iranian people require, so this money will be allocated to meet those needs, as determined by the Iranian government.”

Raisi’s interpretation of the prisoner-swap agreement clearly contradicts the stance of the US President Joe Biden’s administration. US State Department spokesman Matthew Miller informed reporters that the money would be held in Qatari banks and closely monitored by the US Treasury Department, ensuring its exclusive use for humanitarian causes.

The prisoner exchange involves the release of five Americans detained on espionage charges and five Iranians imprisoned in the US for purportedly violating Washington’s sanctions against Tehran. Additionally, the Biden administration granted sanctions waivers to facilitate the release of $6 billion in frozen Iranian funds by South Korean banks.

Starting in 2018, tens of billions of dollars owed to Iran for oil and other exports had been frozen in bank accounts worldwide under US sanctions after then-President Donald Trump withdrew the United States from the Iran nuclear deal. Despite his 2020 campaign pledge to reinstate the Joint Comprehensive Plan of Action (JCPOA), President Biden has been unable to do so since taking office in January 2021.

White House National Security Council spokesman John Kirby remarked last month that the unfrozen funds may solely be utilized for essential purchases such as food, medicine, and non-military medical equipment. He speculated during an MSNBC interview on Tuesday that Raisi’s statements may be aimed at appealing to his domestic audience, suggesting Iran’s flexibility in using the funds.