Obama admits some unfrozen Iran cash will fund terror

US President Barack Obama delivers remarks on the nuclear deal reached with Iran at American University in Washington, DC, August 5, 2015 (AFP Photo/Jim Watson)

Washington (AFP) - President Barack Obama acknowledged Wednesday that Iran might use cash coming its way under sanctions relief to fund "terrorist organizations" but argued this is preferable to allowing it to develop nuclear arms.

"The truth is, that Iran has always found a way to fund these efforts," Obama said, in a speech to defend the Iran nuclear deal.

"And whatever benefit Iran may claim from sanctions relief pales in comparison to the danger it could pose with a nuclear weapon."