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Trump Revives $1.7 Billion Cash-to-Iran Claim in Prime-Time Iran Address

The payment at issue was a decades-old claims settlement, not part of the nuclear deal.

Overview

  • President Trump, who delivered a televised update on the Iran conflict Wednesday night, repeated that Barack Obama "gave $1.7 billion in cash" to Iran.
  • Officials have long said the money was a 2016 settlement paid from the U.S. Treasury’s Judgment Fund to resolve claims dating to the 1970s, returning Iranian funds that had been frozen.
  • Because sanctions cut Iran off from normal banking channels, the U.S. delivered the settlement in physical foreign currency, a method Treasury spokeswoman Dawn Selak said reflected the reach of those sanctions.
  • An initial $400 million arrived on January 17, 2016, the same day Iran released four American detainees, and the administration later said the timing was used as leverage, with the remaining $1.3 billion paid in the following weeks.
  • Coverage varies across outlets, with conservative sites highlighting Trump’s attack on Obama’s Iran deal as a “disaster,” while Newsweek and others emphasize Obama’s public denial that the payment was ransom and his explanation for using cash.