Biden Administration Allowed Iran to Smuggle $1 Billion in Oil Despite Sanctions

The Biden administration knowingly allowed Iran to continue a billion-dollar oil smuggling operation, despite receiving multiple intelligence briefings detailing the scheme, according to a bombshell report from The Washington Free Beacon.

International intelligence agencies compiled a 45-page report in April outlining how Iran was using Iraqi intermediaries to bypass U.S. sanctions and generate at least $1 billion annually possibly as much as $3 billion. The report was shared with officials from the State and Treasury departments, as well as U.S. intelligence agencies, yet the administration took no meaningful action to stop it.

According to a former U.S. official, the Biden administration deliberately avoided sanctioning Iran’s activities to protect Iraqi Prime Minister Mohammed Shia al-Sudani and maintain the illusion that Iraq is a “constructive regional partner.”

• Iran’s proxies control Iraq’s institutions, including the oil smuggling operations.

• The U.S. administration has downplayed the extent of Iranian influence over Iraq.

• Reuters reported last month that Iran had been making at least $1 billion annually from this operation since 2022, when Sudani took office.

A State Department official acknowledged discussions with Iraq about the illicit trade but failed to outline any enforcement measures, instead issuing vague statements about the importance of bringing oil to market “transparently.”

Iran’s terror network, which includes Hamas, Hezbollah, and the Houthis, has been emboldened by Tehran’s regained financial power under Biden. Just months after Hamas launched its brutal attack on Israel, killing 1,200 people and taking hundreds hostage, U.S. officials were made aware of the Iranian oil smuggling scheme. Yet, they failed to act.

The contrast with Trump’s foreign policy is striking. Under the Trump administration, crippling sanctions on Iran devastated its economy, limiting its ability to fund terrorism. However, since Biden took office, Iran has recovered an estimated $200 billion through resumed oil sales, fueling regional instability and directly supporting terror proxies.

The Biden administration’s refusal to enforce existing sanctions on Iran raises serious questions about its commitment to U.S. national security and Middle East stability. While officials in Washington ignored intelligence warnings, Tehran’s terror network expanded, and American adversaries grew stronger.

With President Trump set to return to office, the question remains: will his administration reinstate tough sanctions and restore the pressure campaign that once crippled Iran’s ambitions?

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