Obama:
- In January 2016, the Obama administration transferred $1.7 billion to Iran to settle a decades-old dispute over a failed arms deal from the 1970s. This included $400 million in principal (Iran’s payment for undelivered U.S. military equipment) and $1.3 billion in estimated interest. The funds came from the U.S. Treasury’s Judgment Fund, using non-U.S. currencies (euros, Swiss francs, etc.) delivered in cash due to sanctions that cut Iran off from international banking systems.
- The timing of the initial $400 million payment coincided with the release of four American prisoners by Iran, leading to accusations of a "ransom" payment. The Obama administration denied this, stating the negotiations were separate but admitted the cash was used as leverage to ensure the prisoners’ release
Unfreezing of Iranian Assets (JCPOA):
- As part of the JCPOA, sanctions were lifted, allowing Iran access to its own frozen assets held in foreign banks. Estimates of these assets range from $50 billion to $150 billion, with the higher figure cited by Obama in a 2015 interview but not verified. Treasury officials, like Adam Szubin, clarified that Iran’s usable liquid assets were likely around $50–56 billion after accounting for illiquid investments and debts.
Biden:
Yes, Iran’s financial situation improved under the Biden administration compared to the Trump administration, primarily due to relaxed enforcement of oil sanctions and specific sanctions waivers, though the extent and implications are debated. Here’s a detailed breakdown:
- Oil Export Revenues:
- Under the Trump administration (2017–2021), stringent "maximum pressure" sanctions slashed Iran’s oil exports and revenues. In 2019, Iran’s crude oil export revenue was approximately $8 billion, down from $100 billion annually before sanctions tightened, and its foreign currency reserves dropped from $128 billion in 2015 to $15 billion by 2019
- Under Biden (2021–2025), non-enforcement of oil sanctions led to a significant rebound. Iran’s crude oil export revenue rose to $42.6 billion in 2022 and an estimated $50–70 billion annually by 2023–2024, largely from increased exports to China (up to 1.5 million barrels per day). Critics argue this generated $70–200 billion in additional revenue over Biden’s term, though exact figures vary
- Sanctions Waivers and Unfrozen Assets:
- $6 Billion Prisoner Swap (2023): The Biden administration unfroze $6 billion in Iranian oil revenues held in South Korea as part of a prisoner exchange deal, transferred to a Qatari bank for humanitarian use (e.g., food, medicine). U.S. officials, including John Kirby, emphasized that none of this money has been spent by Iran, with strict oversight to prevent diversion. However, critics argue that money is fungible, freeing up other funds for Iran’s activities, including support for groups like Hamas.
- $10 Billion Iraq Waiver (2023–2024): Biden extended a sanctions waiver twice (July 2023 and March 2024), allowing Iran to access $10 billion in electricity revenue held in escrow in Iraq, with funds moved to accounts in Oman. Unlike prior waivers (2018–2023), these allowed Iran to convert funds into euros for budget support, raising concerns about funding terrorism.
- IMF Special Drawing Rights (2021): The Biden administration supported a $650 billion IMF allocation, of which Iran received $4 billion in unconditional liquidity, exchangeable for hard currency, enhancing its financial flexibility.
