US pays $1.3 billion more to Iran after $400m cash transfer

The US paid $1.3 billion in interest to Iran in January to resolve a decades-old dispute over an undelivered military sale, two days after allowing $400 million in cash to fly to Tehran.

State Department spokeswoman Elizabeth Trudeau says the U.S. couldn't say more about the Jan. 19 payments because of diplomatic sensitivities. They involved 13 separate payments of $99,999,999.99 and final payment of about $10 million. There was no explanation for the Treasury Department keeping the individual transactions under $100 million.

The money settles a dispute over a $400 million payment made in the 1970s by the US-backed shah's government for military equipment. The equipment was never delivered because of the 1979 Islamic Revolution that overthrew the shah and ended diplomatic relations between the US and Iran, Associated Press reports.