Some Obama administration officials opposed $400 million cash shipment to Iran

State Dept. spokesman John Kirby fields questions on Iran cash payment

(Image credit: NBC News)

published 4 August 2016

On Tuesday, The Wall Street Journal reported that the U.S. flew a plane carrying $400 million in cash to Iran at the same time Iran released four jailed Americans in January, and on Wednesday, The Journal said that some officials in the Justice Department objected to the timing of the payment, the first installment of a $1.7 billion settlement of a failed arms deal dating back to 1979. Republicans hammered the Obama administration on Wednesday, suggesting the payment was ransom for the Americans — which would be a violation of U.S. policy — but the White House insisted that there was absolutely no link between the payment and the prisoner exchange.

Both the prisoner swap and $1.7 billion settlement were negotiated by the State Department, and Justice Department officials did not object to either deal, considering the settlement a good deal for America, The Journal said, citing "people familiar with the discussions." But the Justice officials were reportedly concerned that delivering pallets of cash at the same time as U.S. prisoners were released would send the wrong signal to Iran, and to others who might seize American citizens. "People knew what it was going to look like, and there was concern the Iranians probably did consider it a ransom payment," one unidentified source told The Wall Street Journal. You can watch State Department spokesman John Kirby respond to questions about the payment in the video below. Peter Weber

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Peter has worked as a news and culture writer and editor at The Week since the site's launch in 2008. He covers politics, world affairs, religion and cultural currents. His journalism career began as a copy editor at a financial newswire and has included editorial positions at The New York Times Magazine, Facts on File, and Oregon State University.

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