US Sells Arms to Iran: Iran-Contra Scandal Exposed

A small Lebanese magazine called Ash-Shiraa published a story on November 3, 1986, that exposed the most damaging political scandal of the Reagan presidency: the United States government had been secretly selling weapons to Iran, a nation it publicly branded a terrorist state, and diverting the proceeds to fund Contra rebels in Nicaragua in direct violation of a congressional ban. The arms sales began in 1985 through Israeli intermediaries and eventually involved direct American shipments. The stated justification was securing the release of American hostages held by Hezbollah in Lebanon, an Iranian proxy. Over the course of 18 months, the U.S. shipped more than 2,500 TOW anti-tank missiles and spare parts for HAWK anti-aircraft systems to Tehran. Three hostages were eventually released, though three more were taken during the same period. National Security Council staffer Lieutenant Colonel Oliver North masterminded the diversion scheme, channeling between $3.8 million and $16 million from the Iranian arms payments to the Contras. Congress had explicitly prohibited American military aid to the Contras through the Boland Amendment. North and his superior, National Security Advisor John Poindexter, operated the network through Swiss bank accounts and private intermediaries, deliberately concealing the operation from Congress. President Reagan initially denied any arms-for-hostages trade, then acknowledged the sales while insisting he had not been fully informed about the Contra diversion. The Tower Commission, appointed to investigate, concluded that Reagan's management style had allowed subordinates to operate without adequate oversight. North and Poindexter were convicted on multiple charges, though both convictions were later overturned on technicalities related to immunized congressional testimony. The scandal consumed Reagan's final two years in office and raised lasting questions about executive power and congressional oversight of covert operations.