In what many critics see as a parting gift to a long-standing adversary, the Biden-Harris administration provided Iran with $10 billion in sanctions relief mere days after Donald Trump secured his victory in the 2024 presidential election. The move raised eyebrows across the political spectrum, given Iran’s well-documented support for terrorist organizations and its role in orchestrating attacks against Israel. Secretary of State Antony Blinken justified the decision by stating that waiving these economic sanctions served the national security interests of the United States. However, this explanation has done little to quell concerns.
The Biden State Department altered the terms of this waiver, allowing Iran to exchange Iraqi dinars for euros, which could then be deposited in accounts based in Oman. This subtle but significant change effectively gave Iran access to international markets, bypassing stricter controls implemented during Donald Trump’s presidency. Under Trump’s administration, Iranian funds were confined to an escrow account in Baghdad, significantly limiting their utility. Biden’s approach ostensibly limits Iran’s use of the funds to humanitarian purposes, such as medicine and essential supplies, but skeptics remain unconvinced.
Republican critics were quick to highlight the fungibility of money, pointing out that freeing up sanctioned cash for humanitarian needs could indirectly allow Iran to redirect other resources to support its regional proxies. Groups like Hamas, Hezbollah, and the Houthi rebels—entities with a proven track record of destabilizing the Middle East—stand to benefit. Adding fuel to the fire, the United Nations recently reported that Iran had bolstered its support for the Houthi rebels to an “unprecedented” degree, following an earlier Biden administration decision to lift $6 billion in sanctions on Iran. These same Houthi rebels have targeted international shipping and launched missile strikes against Israeli civilian areas, actions that Biden appeared willing to overlook when he delisted the group as a terrorist organization in 2021.
This sanctions waiver wasn’t just about cash; it sent a clear message about the administration’s priorities, one that many argue ignores Iran’s dangerous track record. Critics argue that this decision directly undermines the security of allies like Israel while emboldening Tehran to continue its destabilizing activities in the region. For many, it’s a stark contrast to the Trump administration’s hardline stance, which curtailed Iran’s ability to access international funds and support its proxies.
Meanwhile, Donald Trump himself has become a target of Iran’s ire, surviving two assassination attempts this year alone, in July and September. Following a briefing from the Office of the Director of National Intelligence (ODNI), Trump warned that Iran’s continued provocations were playing with fire. These attempts on his life were reportedly aimed at destabilizing the United States, further underlining the stakes in maintaining a tough stance on Tehran. As the Biden administration moves into its twilight months, its decisions regarding Iran are likely to face even greater scrutiny.
