Last year, the United States and five other nations struck a historic agreement with the
Islamic Republic of Iran.
In exchange for Iran repurposing, and reducing its nuclear facilities, the U.S. and the EU
will lift longstanding economic sanctions.
In addition, up to $100 billion dollars in frozen assets, some of them dating back to
1979, will be returned to Iran.
This massive funding infusion will have an enormous impact, and Senior Obama administration
officials have said the money could be used by terrorist groups in Iran.
So, just how will this money be used?
And will it be used to fund terrorism?
Well, some of this money will come from the United States.
When Iran overthrew its pro-US government in 1979, the country’s assets in the US,
including their embassy and other properties were seized.
Additionally, about $400 million dollars worth of military equipment, which Iran had already
paid for, was cancelled.
This money, and money from renting seized Iranian property is still owed, and will be
returned as sanctions are lifted.
In fact, in the summer of 2014 the US paid $3 billion dollars to Iran as a show of good
faith.
However, a far more vast sum will be paid by nations like China, India, Japan, South
Korea, and Turkey.
All these countries have bought Iranian oil in the past, but due to sanctions, these funds
have been stuck in escrow.
Still, many wonder exactly what Iran’s government will do with such a huge influx of capital.
The Iranian transport minister recently announced that the government was buying 114 civilian
planes, a deal that is worth at least $10 billion dollars.
The US Treasury also implied that Iran would require $500 billion dollars to address all
of its current domestic concerns, which include its struggling banks and highly outdated energy
sector.
However, western fears about Iran using some of this money to fund terrorism are not altogether
unfounded.
As of 2014, the US state department continues to believe that Iran is an active sponsor
of terrorism.
Groups like Hamas and Hezbollah have seen Iranian funding, and in Syria, Iraqi and Afghan
fighters have been armed and trained in support of Bashar al- Assad.
In addition, even if Iranian president Hassan Rouhani submits a budget that uses funds to
resolve interior issues, he can be overruled by their their Supreme Religious Leader, who
is responsible for all military and foreign policy decisions.
So will all $100 billion dollars be put in the hands of terrorists?
Most likely, no.
However, as Iran struggles to rebuild itself after 27 years of sanctions, some of the money
is expected to wind up in terrorist hands.
Despite both the US and Iran’s best efforts, neither is fully in control of those newly
freed funds.
The lifting of sanctions will likely have a profound effect on Iran, and may even lead
to cultural and social changes, in addition to economic and political ones.
Check out our video to see just how powerful Iran has been up to now.
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