Torrential rain has caused devastating floods across Iran resulting in the death of 62 people and the displacement of tens of thousands.
"This is a major emergency that requires additional humanitarian support," Rana Sidani Cassou, IFRC head of communications, told Rudaw English via email on Thursday.
"IFRC has just deployed 500,000 Swiss francs ($500,575) from its disaster fund to bolster local Red Crescent efforts."
"These funds will be used to provide unconditional cash grants to about 3,000 families that have lost homes and livelihoods in the floods," she added.
The donation comes as Tehran accuses Washington of blocking the Iranian Red Crescent's bank accounts under its strict sanctions regime, re-imposed in November after President Donald Trump withdrew from the 2015 nuclear deal in May.
The European Union's Commissioner for Humanitarian Aid and Crisis Management Christos Stylianides announced on Thursday that they are providing an "initial amount of €1.2 million [$1.35 million] in emergency support" for Iran.
Struggling with the magnitude of the disaster, Iran urgently needs international support. However, Tehran says US sanctions on its banking sector have obstructed the flow of aid and equipment.
US officials responded to the claim, arguing the flooding disaster has been made worse by "Iranian regime mismanagement in urban planning and in emergency preparedness".
Two weeks of torrential rainfall has led to widespread flooding, forcing the government and the Islamic Revolutionary Guard Corps (IRGC) to deploy thousands of troops to assist flood victims.
Iran has also deployed helicopters and more than 11,000 Red Crescent relief workers to deal with the unfolding disaster.
Foreign Minister Javad Zarif accused the administration of US President Donald Trump of "economic terrorism" for "impending aid efforts by #IranianRedCrescent to all communities devastated by unprecedented floods.”
In a statement published Thursday afternoon, Zarif claimed the US "even tried to obstruct efforts by expatriate Iranians to make donations to the accounts of the Iranian Red Crescent."
Bahram Qasemi, Iran's foreign ministry spokesperson, told state news agency IRNA the US has blocked the Iranian Red Crescent's accounts making it impossible for international aid to reach Iran.
The IFRC donation appears to further refute the claims.
Since the sanctions were re-imposed in November, the United States has cut off Iran's central bank and several other banking institutions from the worldwide messaging service known as SWIFT, which allows money to be transferred across the global banking system.
Washington has imposed one of its most stringent sanctions regimes on Iran. As a result, global firms and agencies are keen to avoid all dealings with Iran. This is despite Washington's repeated assurances that the sanctions do not apply to humanitarian aid.
"The United States stands ready to assist and contribute to the International Federation of Red Cross and Red Crescent Societies, which would then direct the money through the Iranian Red Crescent for relief," Secretary of State Mike Pompeo said in a press statement Tuesday.
"The regime blames outside entities when, in fact, it is their mismanagement that has led to this disaster. They even jail environmentalists for attempting to help Iran prepare for these very issues," Pompeo said, referring to the case of eight environmentalists recently jailed for more than a year.
Ayatollah Ali Khamenei, Iran's supreme leader, appeared to recognize Iran's failings when he summoned top officials to his residence in Tehran on Wednesday, including the heads of the IRGC and the army.
IFRC said the donation is only the beginning and closer coordination is expected.
"This is just a start and IFRC is working with the Iranian Red Crescent to identify additional means of support," the IFRC's Cassou added.
