Background
In 1984, the
war between Iraq and Iran had expanded to include air attacks against oil tankers and merchant shipping of neighboring countries, some of whom were providing aid to Iraq by shipping Iraqi oil. The Flight 655 incident occurred a year after the
Iraqi Air Force attack on the U.S. Navy guided-missile
frigate USS Stark on 17 May 1987, which killed 37 American sailors. U.S. naval forces had also exchanged gunfire with Iranian gunboats in late 1987, and the U.S. Navy guided-missile frigate
USS Samuel B. Roberts had struck an Iranian
sea mine in April 1988. Two months before the incident, the U.S. had engaged in
Operation Praying Mantis...…………...
For the downing of the aircraft.
As part of the settlement, even though the U.S. government did not admit legal liability or formally apologize to Iran, it still agreed to pay
US$61.8 million on an
ex gratia basis, amounting to $213,103.45 per passenger, in compensation to the families of the Iranian victims.