The U.S. to Pay $1.7 Billion Debt to Iran

John Kerry, the U.S. Secretary of State, announced on Sunday, January 17, that a case between Tehran and Washington has been resolved, under which the U.S. will pay $400 million in seized assets from 1981 along with $1.3 billion in late fees to Iran. According to the Associated Press, this debt dates back to the time of the revolution in 1979 in Iran, and following a ruling by the International Court of Justice in favor of Iran, the U.S. is obligated to pay it. Kerry stated that before diplomatic relations were severed with the U.S., Iran had $400 million in escrow with Washington for military equipment purchases, which has now accrued a late fee of $1.3 billion. Although the payment to Iran is not directly related to the Iran case, the repayment of this debt just one day after the implementation of the nuclear agreement between Iran and six world powers indicates the U.S. effort to resolve other issues with Iran. President Barack Obama also defended the resolution of this case, stating that the amount paid is much less than what Iran was seeking. Obama emphasized that prolonging this case was not in the interest of the U.S. Diplomatic relations between Iran and the U.S. were severed following the takeover of the U.S. embassy in Tehran by students loyal to Imam Khomeini in November 1979. Iran and the U.S. agreed in 1980 to pursue lawsuits against each other in the International Court of Justice, with Iran seeking the return of payments made for arms purchases from the U.S. Meanwhile, Kerry defended the closure of this case, stating that with this payment at this time, Iran will no longer be able to seek further claims, thus preventing American taxpayers from having to pay a higher amount. However, the payment to Iran has drawn criticism from Republicans. Reince Priebus, the Chairman of the Republican National Committee, stated in a statement that filling the pockets of a government that is a main supporter of state terrorism will not increase American security, and Hillary Clinton, the leading Democratic candidate, should condemn this action.