Biden urged to scrap Iranian sanctions relief

Republicans demand US president refreezes funds generated by Tehran from electricity trading with Iraq

JOE BIDEN is under mounting pressure to scrap $10 billion in sanctions relief for Iran after its attack on Israel.

Republican congressmen have demanded the US president reverse his decision to unfreeze Iranian funds generated from electricity shipments to Iraq. The US first waived sanctions on the $10 billion (£8 billion) in 2018, giving Iran access to money that had been frozen. The order was renewed by Mr Biden in November.

The State Department said the money, which is held in euros in Oman, can only be used for humanitarian purposes under the terms of the waiver.

However, critics argue this has freed resources and enabled Iran to fund its proxies across the Middle East and step up its nuclear weapons programme. G7 countries are thought to have discussed the prospect of further sanctions on Iran in a call on Sunday, after Iran sent more than 350 drones, missiles and rockets towards Israel on Saturday.

Jeremy Hunt, the Chancellor, will today begin a three-day trip to Washington DC.

“At times of instability across the globe, we are reminded that we are stronger when we stand together,” he said in advance of the visit.

“The US is our most important strategic ally and we are both at the forefront of keeping the world safe.”

His visit comes as legislators across the West call on their governments to step up sanctions against Iran, which are already significant.

In the UK, Labour has demanded the Government introduce a raft of measures in response to the attack.

The EU has also announced it will discuss whether to impose new sanctions, although the bloc’s leaders suggested yesterday they were focused on de-escalating the conflict first.

Josep Borrell, the EU’S top diplomat, who has been keen to soften sanctions talk, warned Hossein Amir-abdollahian,

the Iranian foreign minister, “not to escalate further”.

Charles Michel, the European Council’s president, who attended a meeting of G7 leaders over the weekend, added: “We will continue all our efforts to work towards de-escalation.”

The strikes will feature prominently in discussions between EU leaders when they meet for a summit in Brussels this week.

At their last meeting, they discussed whether to hit Iran with new economic sanctions in response to intelligence warnings that Tehran was preparing to ship ballistic missiles to Russia. Republicans demanded that Mr Biden restrict Iranian imports and sanction Chinese companies which buy oil from Tehran.

Joni Ernst, a senator from Iowa, has proposed one of several bills to increase restrictions on Iranian trade.

“President Biden must enforce sanctions on Iran now,” she said yesterday.

Another bill, introduced by Republican Mike Lawler, would hit Iran’s oil industry.

“We must cut off the illicit oil trade bankrolling Iran,” he said.