This consisted of a $400 million principal payment and $1.3 billion in interest, settling a failed 1979 arms deal. The payment was delivered via airlift in foreign currency on pallets and coincided with the release of American prisoners.

Payment Breakdown: The $400 million was originally placed in a U.S. Foreign Military Sales trust fund by Iran before the 1979 revolution; the $1.3 billion was interest negotiated to settle the claim at The Hague.
Controversy: The timing—coinciding with the release of four American hostages—led to allegations that the payment was ransom, which the Obama administration denied, calling it "leverage".
Method of Transfer: The funds were delivered in foreign currencies (euros, Swiss francs) via an unmarked cargo plane because U.S. sanctions prohibited direct dollar transactions with Iran.
Distinction from Frozen Assets: This $1.7 billion was separate from the roughly $100 billion in Iranian foreign assets that were unfrozen as part of the implementation of the JCPOA (Iran Nuclear Deal).

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