Time To Terminate the Iran-US Claims Tribunal

The Iran-U.S. Claims Tribunal, which began operation in July 1981, was expected to decide all claims within a few years, yet it remains in operation three decades later. While the tribunal has performed well as a claims settlement mechanism, it has outlived its original purpose, is expensive to operate, and remains a symbol of the nadir in U.S.-Iranian relations. The Iranian government has often engaged in disruptive behavior, including late payments into the joint account established to fund the tribunal, frivolous challenges to the U.S. and third-country judges, and orchestrating the resignation of Iranian judges. Yet overall Tehran has observed the terms of the Algiers Accords, including participating in tribunal hearings and paying final awards to U.S. claimants. Nevertheless, instead of having the tribunal continue to arbitrate claims relating to transactions from the 1970s, Iran and the U.S. should agree on an overall financial settlement for all remaining claims. To the extent more claims are outstanding by Iran against the U.S., the Obama administration could release certain funds claimed by Iran in the U.S. and lift sanctions on additional Iranian funds in foreign banks. Even if this current rapprochement between the U.S. and Iran proves short-lived, it still makes little sense to allow the tribunal to operate. While the two governments are talking to each other, now is a good time for them to agree to terminate this vestige of the Iranian hostage crisis.