The U.S. Paid Iran a Total of $1.7 Billion in Cash

The American newspaper Wall Street Journal has reported that contrary to previous reports, $1.3 billion in interest from a delayed military contract between Iran and the U.S. was paid in cash to the Islamic Republic in two shipments. According to the report published on Tuesday, September 6, this $1.3 billion was sent in two cash shipments from Europe to Iran on January 22 and February 5, 2016. The Wall Street Journal emphasized that this information was obtained from a briefing session by officials from the State Department, Treasury, and Justice in the U.S. Congress. Previously, the U.S. had sent two cash shipments totaling $1.3 billion related to old contractual interest and $400 million related to the principal amount on January 7, 2016, aboard a cargo plane from Geneva, Switzerland to Iran. The Associated Press had previously reported that this $1.3 billion was paid to the Islamic Republic in 13 separate installments. This money represents the interest on a $400 million arms deal between Iran and the U.S. during the last months of Mohammad Reza Shah Pahlavi's rule, which was not executed due to the Islamic Revolution and the severance of diplomatic relations between the two countries. The timing of the money's transfer to Iran and the release of dual-national Iranian-American prisoners by Tehran led Republicans in the U.S. to consider it as 'ransom' to the Islamic Republic. The Obama administration, while stating that the payment was not 'ransom,' confirmed that it did not make the payment until it was assured of the prisoners' release. Meanwhile, Republicans presented a proposal to the U.S. Congress on September 6, which would prohibit the U.S. Treasury from making any payments to Iran until the Islamic Republic returns the $1.7 billion to the U.S. Senator Marco Rubio of Florida stated, 'The U.S. government should not negotiate with terrorists and pay them ransom for the release of American hostages.' The U.S. government considers the Iranian regime the world's largest supporter of terrorism, although the Islamic Republic makes the same accusation against the U.S. The Obama administration had previously announced that due to sanctions against Iran, it could not make the $1.7 billion payment to Tehran through banking channels.