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The circumstances under which the Louisiana Territory was purchased was that Thomas Jefferson attempted to avoid war with France over the port of New Orleans by offering to buy New Orleans from France. France responded by asking if the United States wanted to buy all of the Louisiana Territory.
Jefferson was president when the Louisiana Territory was purchased from France. Iowa is part of that territory.
The United States bought the Louisiana Territory from France for $15 million in 1803.
Spanish territory
The main reason the Louisiana territory was sold to the US was because the seller, France was broke following recent war expenses. The Louisiana Territory roughly encompassed 13 central and western states, from Louisiana to Montana.