Obama says $1.7B to Iran was legal settlement, not ransom, as Trump renews criticism
WASHINGTON, DC: President Donald Trump on Wednesday, April 1, criticised former President Barack Obama during a national address, revisiting the controversial 2016 transfer of funds to Iran. His remarks came as the conflict in the Middle East continues to escalate.
Obama has previously denied any wrongdoing, maintaining that the funds were not a nefarious payment but money that legally belonged to Iran. US and Israeli forces launched joint strikes on February 28 targeting Iran’s political and military leadership after failed nuclear negotiations.
Obama defends Iran settlement, denies hostage-linked claims
Obama rejected claims that the payments to Iran were linked to hostage negotiations, stating the United States does not pay ransom. He said the payments had been publicly announced months earlier and were neither secretive nor improper.
According to Obama, the notable aspect was that the funds were delivered in cash, due to practical constraints rather than intent. “The reason that we had to give them cash is precisely because we're so strict in maintaining sanctions and we do not have a banking relationship with Iran, that we couldn't send them a check and we could not wire the money,” he explained.
The settlement, resolving claims at an international tribunal in The Hague, was delivered in foreign currencies including Swiss francs and euros, transported in installments on wooden pallets.
The payment addressed a longstanding dispute from the 1970s over a failed military equipment deal. It was drawn from the Judgement Fund, a Treasury Department mechanism for settling legal claims, which does not require additional congressional approval once allocated.
US officials reiterated that sanctions prohibited transactions in US dollars and limited Iran’s access to the global financial system, making the cash transfer necessary. Republican lawmakers, including Senator Mark Kirk, criticized the move, calling it a “ransom payment” and warning it could increase risks for Americans abroad. Reports detailing the payment structure were first published by The Wall Street Journal.
Trump attacks Obama’s Iran policy and 2016 nuclear deal
In his address, Trump framed the ongoing conflict as a result of prior administrations’ decisions. He argued both Obama and former President Joe Biden left the US in a vulnerable position with Iran. Trump emphasized actions taken during his presidency, including the killing of Qasem Soleimani and exiting the Iran nuclear deal, which he described as a “disaster.”
Central to Trump’s criticism was the 2016 payment, which he described as cash flown from US banks in Virginia, Washington, DC, and Maryland. He claimed the payment aimed to secure goodwill but failed, with Iran continuing its nuclear ambitions.
Trump further stated that his administration corrected these earlier policy decisions, maintaining that diplomacy was his preferred approach but was rejected by Iran. During his 2016 campaign, he said, “We paid $400 million for the hostages. Such a bad precedent was set by Obama. We have two more hostages there, right? What are we going to pay for them? What we’re doing is insane.”
