U.S. official: Iranian cash was ‘leverage’ for freed hostages

A U.S. State Department spokesman said today the agreement to release $400 million in frozen Iranian assets was contingent upon the release of four American hostages held in Tehran. Obama administration officials have previously denied the money was offered as a ransom for the prisoners. State Department spokesman John Kirby said negotiations over releasing the money and the prisoners took place separately but admitted the United States held onto the cash as leverage until a plane carrying the four American citizens left Iran. A furor over the $400 million erupted earlier this month after The Wall Street Journal reported U.S. officials handed over the funds in cash. President Barack Obama defended the unusual delivery by noting the United States does not have a banking relationship with Iran.

The Associated Press contributed to this report.