The $6 billion, initially frozen in South Korea from Iranian oil sales, was set to become available to Iran for humanitarian needs.
It was part of a deal the Biden administration reached with Tehran last month to unfreeze the funds in exchange for the release of five American prisoners held in Iran, who are now back in the U.S.
But the brutal Saturday invasion from Hamas, which left more than 1,200 Israelis dead, has put renewed scrutiny on the deal. U.S. officials say Iran is broadly responsible as a major backer of the Palestinian militant group.
Deputy Treasury Secretary Wally Adeyemo reportedly told House Democrats that the U.S. and Qatar have agreed to prevent Iran from accessing the money.
And White House National Security Council spokesperson John Kirby said Thursday that “not one dime” of the money has been spent.
“We are watching every dime,” Kirby said at a briefing.
The U.S.-Iran deal had already infuriated GOP lawmakers, many of whom repeated their concerns after the Hamas attack on Saturday.
“The Iranian regime will use all available financial tools to further fuel this war against Israel,” reads a letter signed this week by 100 House lawmakers, many of them Republican.
Blinken, who vowed to stand by Israel while meeting Thursday with Israeli Prime Minister Benjamin Netanyahu, noted the U.S. holds all the power over the money.
“We have strict oversight of the funds and we retain the right to freeze them,” Blinken said.
Read the full coverage of Israel-Gaza at TheHill.com.
