In August 1981, President Mohammad-Ali Rajai and Prime Minister Mohammad-Javad Bahonar were assassinated in an explosion.
[1] As the prime minister, Mousavi had the full backing of Ruhollah Khomeini, the supreme leader, and he refused to accept his resignation.
He guided the country through its war with Iraq, and earned popular acclaim for his stewardship of the national economy.
[4] Shortly after the end of Iran–Iraq War on 20 August 1988, Ruhollah Khomeini died, and Ali Khamenei was elected as the new Supreme Leader by the Assembly of Experts.
[1] During the parliament hearing on post-war reconstruction plans, Mousavi had heated arguments with Ali Akbar Hashemi Rafsanjani, the speaker of Iran's parliament at the time, over Rafsanjani's suggestion that Iran accept the offer of western countries to help with post-war reconstruction.