US paid $400 million to Iran after its hostages were released: Report

The Obama Administration insisted that the payment was part of its effort to sort out a long pending dispute with Iran and was not a ransom

The Obama Administration withheld $400 million ransom that was paid to Iran in a plane 'till the time' its hostages were released by Tehran, a major US daily reported today in a potentially damaging report for the Democratic party campaign.

"US officials wouldn't let Iranians take control of the money until a Swiss Air Force plane carrying three freed Americans departed from Tehran on January 17. Once that happened, an Iranian cargo plane was allowed to bring the cash home from a Geneva airport that day," The Wall Street Journal reported.

The Obama Administration has insisted that the payment was part of its effort to sort out a long pending dispute with Iran and was not a ransom. However, the opposition Republican party does not seem to be convinced.

$400 million was the first instalment of the $1.7 billion settlement reached by the Obama Administration with Iran.

"It's time for the White House to drop the charade and admit it paid a $400 million ransom to the world's leading state sponsor of terrorism," the Republican National Committee (RNC) chairman Reince Priebus has said in a statement.

"President (Barack) Obama has foolishly put a price on the head of every American abroad and it should be no surprise that Iran has since detained more US citizens.

"Hillary Clinton's support for this dangerous blunder shows once again she does not have the judgement to be President," Priebus has said.

According to the report, executives from Iran's flagship carrier Iran Air, organised the flight from Tehran to Geneva where the cash - euros and Swiss francs and other currencies - was loaded onto the aircraft.

"Our top priority was getting the Americans home," a US official was quoted as saying.

Once the Americans were "wheels up" on the morning of January 17, Iranian officials in Geneva were allowed to take custody of the $400 million in currency, according to officials briefed on the exchange, the daily reported.