The United States has finally confirmed it allowed Iraq to release $2.7 billion of its debts to Iran.
The mechanism by which the money would be released remains murky, but Washington claims it is part of a number of humanitarian transactions which have been taking place consistently over years since the previous administration.
Speaking in this week’s press briefing, Matthew Miller, spokesperson for the US Department of State, told reporters: “Iran can only access its funds held in accounts for Iraq for humanitarian and other non-sanctionable transactions.”
He told reporters the transaction is consistent with US law and in full coordination with the Government of Iraq while all Iran-related sanctions continue to be upheld.
Iraqi Foreign Minister Fuad Hussein was reportedly given the clearance during a meeting with US Secretary of State Antony Blinken on the sidelines of the Riyadh Conference on June 8, according to Reuters.
The Iraqi foreign ministry source said that the funds will be transferred through the Commercial Bank of Iraq and Iranian officials have confirmed that the money will be used for Iranian Hajj pilgrims' expenses and foodstuffs imported by Iran.
In spite of reports worldwide, the US continues to deny its being in direct talks with Iran over a return to the nuclear deal. Miller said that recent reports have been “false” or misleading, claiming the channels of communication have always been open.
As reporters' questions became more intense, Miller was increasingly uncomfortable, tripping over his words and backtracking as things heated up. A barrage of questions were thrown at the spokesman whose standard lines were clearly not cutting it in light of the Iraq revelations and the obvious frustration reporters felt by the ongoing denials of the Oman talks.
“We have always had the ability to deliver messages to Iran when it’s in the interests of the United States to do so,” he said, undermining the meeting which took place in Oman, repeating the Biden administration’s standard line that diplomacy is the best means to ensuring Iran does not obtain a nuclear weapon in spite of its having reached terrifying limits.
So seriously has the meeting and its outcome been taken by Iran’s adversaries, Israeli Prime Minister Benjamin Netanyahu addressed the matter in the Knesset Foreign Affairs and Defense Committee meeting on Tuesday.
He openly stated there is very much a deal underway between the US and Iran, reasserting claims that "no agreement with Iran will be binding on Israel, which will continue to do everything to defend itself."
Referring to Iran, he told MKs that “over 90% of our security problems stem from Iran and its proxies, and our policy is aimed at increasing the circle of peace, to stop Iran and its proxies”, no matter what deals are struck between Iran and other nations, emphasizing the government’s “opposition to a return to the original [JCPOA] agreement”.
He admitted there are still differences of outlook on the matter between Israel and its largest ally, the US, not only about JCPOA but also about smaller agreements.
The revelations come amidst a busy diplomatic week for Iran, which this week, saw its chief unclear negotiator, Ali Bagheri-Kani, meet representatives of the E3, Britain, France and Germany, in Abu Dhabi on Tuesday.
Christian Turner, Director General Geopolitics and Political Director at the UK’s Foreign and Commonwealth Office, remained tight-lipped on the nature of discussions, only tweeting: “The discussion covered a wide range of issues of mutual interest and concern.”
To have taken place in Abu Dhabi shows the importance of Tehran’s ties to its Arab Gulf neighbours and adversaries, which are taking a key role in facilitating a peaceful resolution to Iran’s ongoing nuclear armament, which, on Abu Dhabi’s doorstep, keeps its leaders awake at night.