By 1987, unemployment was falling, the economy was stable and strong and inflation was low. Opinion polls showed a comfortable Conservative lead, and local council election results had also been successful, prompting Thatcher to call a general election for 11 June that year, despite the deadline for an election still being 12 months away. The election saw Thatcher re-elected for a third successive term.
On 28 June, Iraqi fighter bombers attacked the Iranian town of Sardasht near the border, using chemical mustard gas bombs. While many towns and cities had been bombed before, and troops attacked with gas, this was the first time that the Iraqis had attacked a civilian area with poison gas. One quarter of the town's then population of 20,000 was burned and stricken, and 113 were killed immediately, with many more dying and suffering health effects over the next decades.