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Should clear up any questions about money sent to Iran Money to Iran: Short Answer Yes, the Obama administration did facilitate cash payments to Iran in 2016, totaling about $1.7 billion. This was part of a long-standing legal settlement related to a failed arms deal from the 1970s, not a "ransom" as some critics claimed. Here's a bit more context for clarity. Background and Details The Origin: The payments stemmed from a dispute dating back to the late 1970s. Before the Iranian Revolution in 1979, the U.S. had agreed to sell military equipment to Iran (under Shah Mohammad Reza Pahlavi). Iran paid $400 million upfront, but after the revolution and the U.S. hostage crisis, the deal fell through, and the U.S. never delivered the weapons. Iran later sought a refund through international arbitration at The Hague. The Settlement: In January 2016, as part of broader diplomatic efforts (including the Iran nuclear deal, known as the JCPOA), the U.S. agreed to settle the claim. The total amount was $1.7 billion: $400 million in principal plus about $1.3 billion in interest accrued over decades. Why Cash? The payments were made in cash (in foreign currencies like euros and Swiss francs) because U.S. sanctions at the time prevented direct bank transfers to Iran. The money was flown to Iran on pallets via aircraft. This method drew significant criticism for its optics, but the administration explained it as a practical necessity due to banking restrictions. Timing and Controversy: The first installment ($400 million) coincided with the release of several American prisoners held in Iran, leading some (like Republican critics and then-candidate Donald Trump) to label it a "ransom payment." The Obama administration strongly denied this, stating the settlement and prisoner releases were negotiated separately, though the timing was leveraged for diplomatic advantage. State Department officials later acknowledged that the prisoner release was contingent on the payment being made. Legal and Official Confirmation: This was publicly disclosed by the Obama administration and confirmed in congressional hearings. It was handled through the U.S. Treasury and Justice Departments as a resolution to an international claim, not an aid package or secret deal.