U.S. Says It Knew of Israel-Iran Oil Deal : U.S. Confirms Knowing About Oil Deal Between Israel and Iran

Israel informed the United States a month ago that it had concluded a deal with Iran for the purchase of Iranian oil, the State Department said today.

NBC News disclosed the transaction Monday night, saying that Israel paid Iran $36 million and that one purpose was to encourage Iran to use its influence to help free three Israeli soldiers being held in Lebanon.

Department spokeswoman Margaret Tutwiler said the United States was notified of the deal after it was concluded. She offered no opinion as to whether this country approved of the Israeli action.

“Foreign countries do not seek U.S. approval for oil purchases from a third country,” she added.

As for the possibility that Israel might negotiate with Iran on behalf of the American hostages being held in Lebanon, Tutwiler said the United States will not make deals for hostages nor does it reward terrorists.

Asked whether Israel should negotiate on behalf of the U.S. hostages, the spokeswoman said the question should be directed to Israel.

NBC, citing U.S. and Israeli intelligence, said Israeli representatives have discussed the possibility of selling Iran spare parts for its Western-made military hardware.

In addition to winning the radical Muslim country’s help in seeking the release of Israelis, the oil purchases and a potential spare parts deal are intended to bolster Iran’s position against a common enemy, Iraq, NBC said.

Spokesmen for Israel’s Energy, Foreign and Defense ministries today refused to comment on the report. The Defense Ministry also refused to allow reporters to talk to Uri Lubrani, mentioned in the NBC report as the man who dealt with the Iranians in Switzerland.

Lubrani is responsible for Israel’s Lebanon policy and served as ambassador to Iran before the revolution that swept the late Ayatollah Ruhollah Khomeini to power.

The United States is backing the deal in hopes that it could lead to the release of American hostages held in Lebanon, NBC said.

The 2 million barrels of oil worth $36 million was delivered in November, NBC said.