While grappling with the Hamas-Israel war, the Joe Biden administration may be sleepwalking into a major escalation with Iran, political insiders as well as Arab and Iranian diplomatic sources have told Amwaj.media. Tehran and Washington earlier this year reached an understanding to de-escalate tensions over Iran’s nuclear program and regional policies. That arrangement could be on the cusp of unraveling.

The White House is under domestic pressure to refreeze Iranian assets that were unlocked as part of a prisoner swap deal with Iran last month. The consequences of the Biden administration reneging on the terms of the accord could be far-reaching. This is especially since the de-escalation effort is believed to involve Iranian pressure on its allies in Iraq and Syria not to target US forces.

Even if a US refreezing of Iranian assets could be temporary, and although Iran is unlikely to immediately expend the...