With a death toll of 1.5 million, the Iran-Iraq War ends after 8 years.

In an attempt to remove dictator Manuel Noriega from power in Panama, the U.S. indicts Noriega for bribery.

Investment firm Kohlberg Kravis Roberts pays nearly $30 billion for R.J. Reynolds-Nabisco, which merged in 1985, in the largest leveraged buyout ever. The investment deal will become the subject of a book and television movie, Barbarians at the Gate.

King Hussein of Jordan renounces control of the West Bank in favor of the PLO.

In Pakistan, General Zia ul-Haq dies mysteriously, and Benazir Bhutto is elected prime minister.

Salman Rushdie publishes The Satanic Verses, enraging many Muslim readers and prompting the Ayatollah Khomeini to put out a death warrant on Rushdie the next year.

In movies, Dustin Hoffman nabs the Best Actor Academy Award for Rain Man, which also wins Best Picture.

The Securities and Exchange Commission begins to investigate Michael Milken of the investment firm Drexel Burnham Lambert for violation of securities law. Milken has pioneered the use of high-yield ``junk'' bonds in the `80s craze for mergers and acquisitions.

In Myanmar, a military coup seizes control of the government, suppressing demonstrations in Yangon (Rangoon), the capital.

Vice-President George Bush wins the presidential election, defeating Massachusetts governor Michael Dukakis.