The Biden administration has reportedly hit the brakes on its plans to unfreeze $6 billion in Iranian funds as part of a prisoner swap deal, after reports suggested Iran helped Hamas carry out its terror attacks in Israel.
The White House and Qatar have agreed to not release the funds, Semafor reported, which were supposed to address humanitarian needs in Iran, after last weekend's terrorist attacks in southern Israel that left more than 1,300 dead.
The money was part of an agreement reached in mid-September to secure the release of five U.S. citizens held in Iran. In exchange, five Iranians imprisoned in the United States were freed, and frozen Iranian funds were moved to accounts in Qatar.
Now the funds will remain frozen in Qatar for the time being, Semafor reported:
The decision, revealed by Deputy Treasury Secretary Wally Adeyemo during a closed-door meeting with Democrats on Thursday and confirmed by a person familiar with his comments, came as the U.S. assesses whether Iran, which supports Hamas, had any direct involvement in the terror attack on Israel.
The Biden administration had come under pressure (including from some Democrats) to freeze the funds, even as officials insist there is not yet direct evidence that Iran participated in the attack. Senate Republicans still plan to move forward with legislation to freeze the funds when they return next week, according to Punchbowl News.
"We have strict oversight of the funds and we retain the right to freeze them," Secretary of State Antony Blinken told reporters in Israel. Iranian state media, meanwhile, claimed the funds remained accessible.
Soon after the attacks on Israel, Hamas members said Iran had helped plan the attacks and gave the go ahead, but Secretary of State Antony Blinken said there is no "direct evidence" of Iran's involvement.
The White House has been adamant the deal to unfreeze Iranian funds had nothing to do with Hamas's slaughter of Israeli citizens.
"Let's be clear: The deal to bring U.S. citizens home from Iran has nothing to do with the horrific attack on Israel," State Department spokesman Matthew Miller said Saturday. "Not a penny has been spent, and when it is, it can only go for humanitarian needs like food and medicine. Anything to the contrary is false."
Republicans in recent days pressured the White House to stop Iran from accessing the funds in Doha following allegations of its involvement in the attack.