[326]
Reagan procured the release of seven American hostages held by Hezbollah by selling American arms to Iran, then engaged in the Iran–Iraq War, in hopes that Iran would pressure Hezbollah to release the hostages.[327] The Reagan administration sold over 2,000 missiles to Iran without informing Congress; Hezbollah released four hostages but captured an additional six Americans. On Oliver North's initiative, the administration redirected the proceeds from the missile sales to the Contras.[327] The transactions were exposed by Ash-Shiraa in early November 1986. Reagan initially denied any wrongdoing, but on November 25, he announced that John Poindexter and North had left the administration and that he would form the Tower Commission to investigate the transactions. A few weeks later, Reagan asked a panel of federal judges to appoint a special prosecutor who would conduct a separate investigation.[328]
The Tower Commission released a report in February 1987 confirming that the administration had traded arms for hostages and sent the proceeds of the weapons sales to the Contras. The report laid most of the blame on North, Poindexter, and Robert McFarlane, but it was also critical of Donald Regan and other White House staffers.