linguistic:voice_change
Situation at the end of 1986

Through the eyes of international observers, Iran was prevailing in the war by the end of 1986. In the northern front, the Iranians began launching attacks toward the city of Suleimaniya with the help of Kurdish fighters, taking the Iraqis by surprise. They came within 16 km (9.9 mi) of the city before being stopped by chemical and army attacks. Iran's army had also reached the Meimak Hills, only 113 km (70 mi) from Baghdad. Iraq managed to contain Iran's offensives in the south, but was under serious pressure, as the Iranians were slowly overwhelming them.

Iraq retaliated by initiating another war of the cities. In one attack, Tehran's main oil refinery was hit, and in another instance, Iraq damaged Iran's Assadabad satellite dish, disrupting Iranian overseas telephone and telex service for almost two weeks. Civilian areas were also hit, resulting in many casualties. Iraq continued to attack oil tankers via air. Iran responded by launching Scud missiles and air attacks at Iraqi targets.

Iraq continued to attack Kharg Island and the oil tankers and facilities as well. Iran created a tanker shuttle service of 20 tankers to move oil from Kharg to Larak Island, escorted by Iranian fighter jets. Once moved to Larak, the oil would be moved to oceangoing tankers, usually neutral. They also rebuilt the oil terminals damaged by Iraqi air raids and moved shipping to Larak Island, while attacking foreign tankers that carried Iraqi oil, as Iran had blocked Iraq's access to the open sea with the capture of al-Faw. By now, they almost always used the armed speedboats of the IRGC navy, and attacked many tankers.

The tanker war escalated drastically, with attacks nearly doubling in 1986, the majority carried out by Iraq. Iraq got permission from the Saudi government to use its airspace to attack Larak Island, although due to the distance attacks were less frequent there. The escalating tanker war in the Gulf became an ever-increasing concern to foreign powers, especially the United States.

In April 1986, Ayatollah Khomeini issued a fatwa declaring that the war must be won by March 1987. The Iranians increased recruitment efforts, obtaining 650,000 volunteers. The animosity between the Army and the Revolutionary Guard arose again, with the Army wanting to use more refined, limited military attacks, while the Revolutionary Guard wanted to carry out major offensives. Iran, confident in its successes, began planning their largest offensives of the war, which they called their "final offensives".