>>507280449Context of the payment:
The $1.7 billion was a settlement of a long-standing arbitration claim related to military equipment Iran purchased from the US in the late 1970s that was never delivered.
The initial payment of $400 million coincided with Iran's release of several American prisoners. While initially denied, the administration later stated the cash was used as leverage for the prisoners' release.
The total payment included the $400 million and an additional $1.3 billion, which represented estimated interest on the funds held by the US since the 1970s.
The payments were made in cash using non-US currencies due to sanctions on Iran.