the iran-contra affair was a scandal that happened from august 1985 to march 1987. the scandal involved the united states government selling weapons to iran in exchange for hostages and to fund the nicaraguan contras. it happened under president ronald reagan's government. when 1,500 missiles were shipped three hostages were released but those three hostages were soon replaced with three more hostages. secretary of state george shultz called it “a hostage bazaar”