On December 25, 1986, YI-AGJ, an Iraqi Airways Boeing 737-270C en route from Saddam International Airport (now Baghdad International Airport) in Baghdad to Amman, Jordan, was hijacked by 4 men. Iraqi Airways security personnel tried to stop the hijackers, but one grenade was thrown into the passenger cabin. It exploded, initiating an emergency descent. Another hand grenade exploded in the cockpit, crashing the plane into the ground near Arar, Saudi Arabia where it broke in two and caught fire.

There were 106 people on the plane, and 63 of them died. The surviving passengers were able to tell what happened. The hijacking was one of the worst ever, and was one of many others in the time from 1985 to 1986.

Shortly after the hijacking, a the pro-Iranian group "Islamic Jihad" (a widely used name for Hezbollah) claimed responsibility. Apparently, the attack was meant as a blow against Iraq during its long war with Iran.