Chapter 3: Iran-Contra — America's Secret Arms Deal with Its Own Enemy

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In the 1980s the Reagan administration secretly sold weapons to Iran — the same country holding Americans hostage — and used the profits to fund rebels in Nicaragua. The biggest scandal since Watergate exposed the treacherous nature of the triangle.

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Transcript

As the Iran-Iraq War raged, American hostages suffered in Lebanon. President Reagan publicly declared, 'We will never negotiate with terrorists!'

Behind closed doors, a secret channel opened. Oliver North and the NSC orchestrated illegal arms sales to Iran, providing crucial weapons for their ongoing war.

Israel, the crucial middleman, shipped American weapons to Iran. Their strategic goal: a prolonged Iran-Iraq war weakened their regional enemy, Iraq.

Profits from these covert arms sales were secretly funneled to the Contras, right-wing rebels in Nicaragua. Congress had explicitly banned this funding.

November 1986: A Lebanese newspaper broke the story. The world learned America sold weapons to an enemy, funding a guerrilla war. Reagan's credibility shattered.

Congressional hearings began. Oliver North, in uniform, testified. The question haunted Washington: who authorized this? A shadowy geopolitical triangle was exposed.

The aftermath: few faced serious prison time. But the lesson was stark. In the Middle East triangle, public rhetoric and private dealings often inhabit two different worlds.