Iran's War with Israel: Behind the Shadows

Iran's conflict with Israel has largely remained in the dark, despite the ongoing tensions between the two countries. Experts now raise concerns about Iranian funding of proxy groups and drone factories, fueled by billions in sanctioned oil sales and waivers.

Iran's conflict with Israel has been fought primarily in the shadows, according to Mark Dubowitz, CEO of the Foundation for Defense of Democracies (FDD). The Biden administration has allowed billions in sanctions waivers that benefit Iran, with estimated billions more in unsanctioned oil sales.

Jonathan Schanzer, senior vice president for research at FDD, explains that releasing these funds ultimately benefits Iran's government because it goes into general funds that can be used for various purposes. The Islamic Revolutionary Guard Corps (IRGC) benefits because it participates in the regular budget, even though the Biden administration claims the waivers do not directly benefit the military.

"There is no way to do it without ultimately benefiting the regime and its ultimate objective, which is to fund its malign activities abroad," Schanzer, a former terrorism finance analyst at the U.S. Department of the Treasury, emphasized.

A State Department spokesperson denied lifting any sanctions on Iran, stating that extensive sanctions remain in place and are being enforced. They pointed to hundreds of individuals and entities sanctioned for various problematic behaviors, including terrorism financing.

However, a Fox News Digital analysis, combined with FDD's research, estimates that Iran has received between $16 billion and $20 billion in sanctions waivers, with billions more gained through oil sales despite U.S. sanctions.

Schanzer argues that even humanitarian aid can be diverted or used cynically to launder money into the Iranian economy. The New York Times reported that Iran managed to sell billions of dollars worth of oil due to lack of oversight and sophisticated evasion methods.

Javier Blas, an energy and commodities reporter, suggests that the Biden administration may be turning a blind eye to Iran's oil sales due to inflation concerns. Iran's cooperation with China and the BRICS economic bloc also provides access to other currencies and trading options.

Experts believe that Russia, China, and others are assisting Iran, often through trade or arms purchases. These transactions do not involve dollars and may be less visible than direct cash transfers.

The ongoing tensions between Iran and Israel remain a source of concern, with experts expressing worries about Iran's funding of proxy groups and drone factories. The sanctions waivers and oil sales are seen as contributing to Iran's ability to wage this covert conflict.