In the 1980s, the presidency of Ronald Reagan was facing two distinct foreign policy challenges.
Members of Hezbollah had taken several Americans hostage in Beirut, Lebanon.
And in Central America, a rebel group known as the Contras was trying to overthrow the socialist Sandinista government in Nicaragua.
To free the hostages, the Reagan administration underook a secret plan to sell military missiles to Iran, in hopes that the Iranian government would persuade Hezbollah to release the hostages.
In Nicaragua, meanwhile, the U.S. was funding, arming, and training the Contras. That is, until Congress abruptly cut off the entire funding.
That's when someone had the idea to take the money that Iran was paying secretly for those missiles and hand it secretly to the Contras. The plan became known later as the Iran-Contra affair.

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