U.S. Concedes $400 Million Payment to Iran Was Delayed as Prisoner ‘Leverage’

August 18, 2016

Author: 

David E. Sanger

Publication: 

New York Times

The State Department stated on August 18 that it delayed a $400 million payment to Iran on January 17 in order "to retain maximum leverage" and ensure the release of three American prisoners who were freed the same day.  The Obama administration denied the payment was a "ransom" and said it was the first installment of a legal settlement with Iran related to arms purchases that the United States never fulfilled.  The prisoner release was a separately negotiated agreement, according to the administration, but the timing of the two transactions became linked in an effort to resolve a series of issues between the United States and Iran on the same day.