Obama administration did not return $1.7 trillion to Iran; instead, it transferred $1.7 billion in 2016 to settle a decades-old, pre-1979 legal dispute. The breakdown of this payment includes the following details:Original Trust Fund: $400 million of this was the original principal that Iran had deposited into a U.S. Foreign Military Sales trust fund in the late 1970s for military equipment that was never delivered.Interest

The remaining $1.3 billion was an agreement for the accumulated interest on that fund.Cash Delivery: Because U.S. sanctions barred Iran from using the global banking system, the administration delivered the funds in foreign cash on pallets.