In a case of mistaken identity, the USS Vincennes shot down an Iranian passenger plane. The Airbus was carrying nearly 300 passengers and all were killed..

During the 1980s, the Iran-Iraq War spilled over into the Persian Gulf, affecting civilian shipping and global oil transportation. In what became known as the Tanker War, both Iran and Iraq sought to damage each other's economies by targeting oil tankers. The U.S. initiated Operation Earnest Will, aimed at escorting and protecting reflagged Kuwaiti oil tankers from potential threats. The USS Vincennes was part of this U.S. naval presence, tasked with ensuring the safe navigation of these vessels and countering potential Iranian aggression.

On the morning of July 3, 1988, Iran Air Flight 655, an Airbus A300, took off from Bandar Abbas, Iran, heading to Dubai in the United Arab Emirates. At the same time, the USS Vincennes was engaged in a confrontation with Iranian naval vessels in the Strait of Hormuz. The situation was tense; the cruiser had ventured into Iranian territorial waters while pursuing Iranian gunboats.

Mistaking the ascending civilian plane for a descending Iranian F-14 fighter jet, which would have posed a direct threat, the USS Vincennes fired two SM-2MR surface-to-air missiles, hitting the aircraft. The Airbus was obliterated, leaving no survivors. Debris and bodies fell into the waters below, painting a horrifying picture of the catastrophe.

The U.S. reaction was initially defensive. The Pentagon justified the action by asserting that the Airbus was outside the commercial air corridor, did not respond to radio warnings, and was descending at a threatening trajectory. However, investigations would later contradict these claims. The plane was in its assigned commercial route and was ascending, not descending. Mistakes in the Vincennes' equipment interpretation, combined with the high-stress situation, led to the grievous error.

Internationally, the incident was met with shock and condemnation. Many nations, especially those in the Islamic world, expressed outrage at the U.S. action. Iran termed it a "barbaric massacre" and asserted that the U.S. had committed a grave crime.

While the U.S. never formally apologized for the incident, it did express "deep regret." In 1996, the U.S. agreed to pay Iran $61.8 million in compensation for the victims—a settlement reached in the International Court of Justice. This sum was intended as compensation for the families, rather than as an admission of guilt.

The tragedy underscored the risks of military operations near civilian zones and the potential for misinterpretation of intentions, especially in high-tension environments. Lessons from the incident led to the U.S. military revisiting its identification and engagement protocols.