Biden offers Israel support, faces criticism on Iran at home after Hamas attack

US President Joe Biden offered Israel on Saturday “all appropriate means of support” after a deadly attack from Palestinian militant group Hamas and warned “any party hostile to Israel” not to seek advantage.

US and Israeli officials were co-ordinating about Israel's military needs in the wake of the attack, with a decision expected soon, a senior US official said.

The US is working with other governments to make sure the crisis does not spread and is contained to Gaza after a deadly Hamas attack in Israel, the official said.

“We want to make sure this is contained in Gaza,” the official told reporters.

The assault by the Iran-backed Islamist group erupted amid efforts by Biden and his team to negotiate a landmark normalisation agreement between foes Israel and Saudi Arabia and a US-Saudi defence pact.

Biden spoke by phone to Israeli Prime Minister Benjamin Netanyahu on Saturday to offer US support, with scenes of violence playing out on American news networks. The two leaders have had strained relations but met in New York last month in a show of solidarity.

“I made clear to Prime Minister Netanyahu that we stand ready to offer all appropriate means of support to the government and people of Israel,” Biden said in a written statement issued after their call.

In his televised remarks later, Biden issued a blunt warning. “Israel has a right to defend itself and its people — full stop,” he said. “Let me say this as clearly as I can. This is not a moment for any party hostile to Israel to exploit these attacks to seek advantage. The world is watching.”

The senior US official, speaking on a conference call, said there was no indication yet that Iran was involved in the Hamas attack but vowed to look into it.

Amid worries about a massive Israeli intelligence failure, the official said Washington had no specific warning or indication that Hamas would launch the attack.

“We always share timely intelligence,” the official said.

Biden directed his national security team to stay in touch about the situation with countries throughout the region including Egypt, Turkey, Qatar, Saudi Arabia, Jordan, Oman, the United Arab Emirates and European allies.

The violence came as Washington was in disarray: Republicans are looking for a successor to ousted Speaker Kevin McCarthy of the House of Representatives, and a budget showdown looms with Biden and his Democrats that could lead to a government shutdown in about 40 days.

Biden's choice to be US ambassador to Israel, former Treasury Secretary Jack Lew, has yet to be confirmed by the US Senate.

IRAN CRITICISM

Republicans seeking to oust Biden in the 2024 presidential election were quick to criticise his handling of the situation.

“Iran has helped fund this war against Israel, and Joe Biden's policies that have gone easy on Iran has helped to fill their coffers. Israel is now paying the price for those policies,” said Florida Governor Ron DeSantis, a Republican running for his party's presidential nomination.

DeSantis appeared to be referring to a prisoner swap deal the Biden administration completed with Iran in September. The deal was first made public in August. Under the deal, the US waived sanctions to allow the transfer of $6 billion in Iranian funds from South Korea to Qatar, a step needed to carry out the US-Iran prisoner swap.

A Biden administration official said not a dollar of the $6 billion has been spent yet. The money is intended solely for humanitarian purposes.

“I can't comment on 2024 because of the Hatch Act. But I can clarify the facts: Not a single cent from these funds has been spent, and when it is spent, it can only be spent on things like food and medicine for the Iranian people,” said White House National Security Council spokesperson Adrienne Watson.

The Hatch Act prohibits White House officials from engaging in political activity.

Brian Nelson, a senior Treasury Department official, said: “All of the money held in restricted accounts in Doha as part of the arrangement to secure the release of five Americans in September remains in Doha.”

The affect of the Hamas attack on the US-Israel-Saudi normalisation negotiations was unclear, but the US official said Washington would not let the militant group derail the talks.

The US has been insistent any agreement include some Israeli concessions to the Palestinians, but what those would be remained a subject of negotiations.

Reuters reported last month that Saudi Arabia is determined to secure a military pact requiring the US to defend the kingdom in return for opening ties with Israel, and will not hold up a deal even if Israel does not offer major concessions to Palestinians in their bid for statehood.

FACTBOX-Iran prisoner swap for $6 billion in spotlight after Hamas attacks Israel

The Palestinian group Hamas's surprise assault on Israel Saturday and Israel's retaliation have killed more than 1,100 people and focused attention on the Iran-backed Islamist group.

US Secretary of State Antony Blinken said on Sunday that Iran has not yet been able to spend a single dollar of the $6 billion in funds that were unfrozen in a US-Iran prisoner swap in September.

Blinken also said he had “not yet seen evidence that Iran directed or was behind this particular attack, but there’s certainly a long relationship.”

WHAT WAS THE IRAN PRISONER SWAP DEAL?

In August, details were made public of a complicated agreement that President Joe Biden approved. Five US citizens detained by Tehran were allowed to leave the country in exchange for the transfer of $6 billion in Iranian funds that had been frozen in South Korea. At the same time, five Iranians held in the US were allowed to leave.

WHAT WAS THE $6 BILLION?

The $6 billion was Iranian money that had been frozen in South Korean banks. After Washington, under former President Donald Trump, placed a total ban on Iran’s oil exports and sanctions on its banking sector in 2019, these Iranian oil revenues were blocked in Seoul.

WHERE IS THE $6 BILLION NOW?

The funds were not dispersed to Iran. Qatar's central bank is overseeing the funds, which are still in Doha.

“The facts are these — no US taxpayer dollars were involved,” Blinken told CNN's “State of the Union” on Sunday. “These were Iranian resources that Iran had accumulated from the sale of its oil that were stuck in a bank in South Korea.”

Under the terms of the Iran prisoner deal, the money can only be used for humanitarian-related purposes, including purchasing food or other goods outside Iran for import, US officials said.

The US Treasury's undersecretary for terrorism and finance, Brian Nelson, said, “All of the money held in restricted accounts in Doha as part of the arrangement to secure the release of five Americans in September remains in Doha. Not a penny has been spent. These restricted funds cannot go to Iran — it can only be used for future humanitarian-related purposes. Any suggestion to the contrary is false and misleading.”

Because of due diligence requirements related to the swap, “It will take many months for Iran to spend down this money,” a State Department spokesperson said. “And, as we've said many times, it can only be used to purchase food, medicine, medical devices, and agricultural products for the people of Iran.”

WHAT ARE CRITICS OF THE DEAL SAYING?

Most of the Republicans vying to be the party's 2024 presidential nominee tried to link Biden's Iran deal to the attacks, with some alleging, incorrectly, that he or US taxpayers funded the attacks on Israel.

Allowing Iran access to those funds under any circumstances improves its budget situation, freeing up money that would be used to use elsewhere, Nikki Haley, the former South Carolina governor and 2024 Republican presidential candidate, said.

“Let's be honest with the American people and understand that Hamas knows, and Iran knows they're moving money around as we speak, because they know $6 billion is going to be released. That's the reality,” she said.

Reuters