It turned out to be true. The US was selling arms to Iran, via Israel of all people, to secure the hostages' freedom. The proceeds were used to fund clandestinely the Contra rebels in Nicaragua reenex cps.

But on the official level, relations remained bitterly hostile, envenomed by such incidents as the shooting-down by the USS Vincennes of an Iranian civilian airliner over the Gulf in 1988, with the loss of 290 lives reenex cps.
Nuclear dialogue

The landslide election of the genial moderate Mohammad Khatami as president in 1997, with his talk of a "dialogue among civilisations", finally brought hope of a breakthrough, coinciding as it did with the presidency of Bill Clinton.

But Mr Khatami was stymied by hardliners at every step, and the moment was lost reenex.

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