Were Israel-Iran relations better in the 80s? What changed?

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(I've decided to add this as a partial answer, rather than edit the question).

One significant event was the 1994 Amia Bombing in Buenos Aires, Argentinia, which killed 80+, in a Jewish community center. Iran is alleged to have been involved, via Hizbollah. Hizbollah-linked organizations and operatives are alleged to have either claimed responsibility or been praised for this terrorist act.

This bombing followed the earlier 1992 bombing of the Israeli embassy killing 30, again with substantial claims of Iranian involvement via its Hizbollah proxies.

https://en.wikipedia.org/wiki/AMIA_bombing https://en.wikipedia.org/wiki/1992_attack_on_Israeli_embassy_in_Buenos_Aires

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According to Ronen Bergman, in his book The Secret War With Iran, there were four factors motivating Israel's Operation Seashell, in which hundreds of tons of Israeli weapons were airlifted or shipped to Iran during the Iran–Iraq war:

  • Israel had sustained significant losses due to the 1979 revolution in Iran. Since weapons were the Iranian rulers means of holding on to power, it was hoped that supplying weapons would earn a certain improvement in relations, despite Iran's ideological opposition.
  • Intensifying the Iran-Iraq war could weaken both sides, which was a desirable objective for the Israelis.
  • Israel deeply feared the prospect of a victorious Saddam Hussein.
  • A simple desire to profit, on the part of the defense industry.

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