The Iran-Iraq war was fought entirely within the boundaries of the two combatant nations, but it was nonetheless a regional war. The war machine of Saddam Hussein’s regime was lubricated with billions of dollars in loans from the Arab oil monarchies, which were anxious to see the revolutionary state in Tehran defeated, or at least bloodied. Iraqi warplanes harried ships seeking to load Iranian oil at the Kharg island terminal and points south on the Persian Gulf coast. In 1987, the US Navy intervened to protect tankers and other commercial traffic from Iranian reprisals. These heated entanglements presaged the degree to which the war was to transform the political economies of many countries in the vicinity.