http://en.wikipedia.org/wiki/U.S._support_for_Iraq_during_the_Iran-Iraq_warThe United States supported Iraq during the Iran-Iraq War as a counterbalance to post-revolutionary Iran. The support took the form of technological aid, intelligence, the sale of dual-use and military equipment, and direct involvement and warfare against Iran.
Other countries that supported Iraq during the war included Britain, France, the Soviet Union, and West Germany.
The U.S. and Iran had clashed before the war with the Iran Hostage Crisis and verbal attacks on the "Great Satan," as Iran's leader the Ayatollah Khomeini called the U.S. Support from the U.S. for Iraq was not a secret and was frequently discussed in open session of the Senate and House of Representatives, although the public and news media paid little attention. On 9 June 1992, Ted Koppel reported on ABC's Nightline, "It is becoming increasingly clear that George H.W. Bush, operating largely behind the scenes throughout the 1980s, initiated and supported much of the financing, intelligence, and military help that built Saddam's Iraq into" the power it became, and "Reagan/Bush administrations permitted — and frequently encouraged — the flow of money, agricultural credits, dual-use technology, chemicals, and weapons to Iraq.”