The Iranian Islamic Revolution in 1979 and the hostage crisis in Tehran frustrated American policymakers whose response came as an embargo on the new government of Iran.
Even so, arms manufactured in the US that were sold to foreign nations continued to find their way to the Iranian military arsenal.
Indeed, the lure of windfall profits was so great that few countries had any scruples about selling weapons to Iran or Iraq—or both at the same time.
"[1] In response, The State Department dispatched special envoy Richard Fairbanks, who "spoke with diplomats, intelligence officers and arms industry officials"[1] in targeted Arab countries as well as South Korea, Italy, Spain and Portugal.
Known as the Iran–Contra affair, it proved humiliating for the United States when the story first broke in November 1986 that the US itself was selling arms to Iran.