State Department: $400 Million Payment to Iran Was "Leverage"

The State Department admitted Thursday that a controversial $400 million payment the United States made to Iran in January was used as "leverage" in the release of American hostages.

"We returned to Iran its $400 million dollars … with concerns that Iran may renege on the prisoner release," State Department spokesman John Kirby told reporters. "We, of course, sought to maintain maximum leverage until after American citizens were released. That was our top priority."

The administration has faced mounting criticism that the payment was for ransom.

Officials have for weeks denied that the cash transfer, which occurred around the same time that Iran released three American hostages, was quid pro quo, and have instead said that the timing of the payment was "coincidental."

After it was revealed Wednesday that the U.S. delayed delivering the $400 million to Iran until the American hostages were "wheels up," the State Department relented.