This chapter analyzes the political debates in the United States about arms sales to Iran and Saudi Arabia in the late 1970s and early 1980s. When the United States “lost Iran” in 1979, the presidential administrations of Jimmy Carter and then Ronald Reagan identified regional instability as a threat to the security of the oil-rich Persian Gulf and “global economic health.” Both administrations turned to arms sales as a means to secure alliances in the face of American vulnerability. In this context, the burgeoning military sales relationship between the United States and Saudi Arabia arrived through an Iranian workshop. Congressional debates about the sale of fighter jets and AWACS to both nations, as well as the corporate lobbying of the Bechtel Corporation, reveal important logical columns in this shift to a more aggressive foreign policy based on military relationships: the link between economic growth and US Cold War legitimacy, the importance of military sales to the US domestic economy, and the crucial place of weapons transfers in good relations with the ruling monarchies in Iran and then Saudi Arabia. When it came to the regional security of the Middle East and secure flows of its oil, this was the time when military force began to become the premier instrument of US diplomacy for a new global age.