In 1996 a huge bomb exploded in front of the Khobar Towers complex in Khobar, Saudi Arabia. The complex housed U.S. Air Force personnel and the attack killing 19 U.S. airmen and wounded 372.

The political right wing in the U.S. blamed Iran for being behind the attack. When some of the alleged culprits, Saudis and Lebanese 'Hizbollah', were indicted in 2001, the NYT wrote:

United States officials have said they have evidence of Iranian involvement, and at a news conference announcing the indictment, Attorney General John Ashcroft charged that Iranian officials ''inspired, supported and supervised members of Saudi Hezbollah'' in the attack.

The F.B.I. investigated the attack with very reluctant assistance from the Saudis.

Ultimately, American officials said cooperation improved, and the Saudis are believed to have provided much of the evidence that led to the indictments.

The Saudis provided 'evidence' that Iran was involved, but the Clinton administration was not convinced. It asked Iran for help.

The letter was sent after the United States obtained convincing information that Iranian officials were behind the attack. The letter came in the midst of Mr. Clinton's broader efforts to reach out to Mr. Khatami and engage the reformist forces in Iran.

[F.B.I. director Louis] Freeh reportedly concluded that the Clinton administration was not serious about solving the case, and he is said to have waited until Mr. Clinton left office in order to try to bring charges in the matter. The indictment came in Mr. Freeh's last week in office as F.B.I. director.

The main figure who promoted the Saudi 'evidence' was indeed then F.B.I. director Louis Freeh. In March 2009 Freeh was hired by the Saudi Prince Bandar, longterm Saudi ambassador to the U.S., as his legal representative in a bribe case in which Bandar is accused of.taking money for arranging a huge BAE arms deal.

Historian and IPS author Gareth Porter recently investigated the tale. Porter, convincingly to me, proves that the Khobar attack was done by al-Qaeda and the Saudis were pushing to make Iran the culprit as a cover-up of their own involvement and to prevent a U.S.-Iran detente.

Here is his series:

• Al Qaeda Excluded from the Suspects List
• Saudi Account of Khobar Bore Telltale Signs of Fraud
• Officials Leaked a False Story Blaming Iran
• FBI Ignored Compelling Evidence of bin Laden Role
• Freeh Became "Defence Lawyer" for Saudis on Khobar

The Saudis provided 'evidence' for Iranian and Lebanese Hizbollah
involvement in the Khobar attack on U.S. forces just as the Clinton
administration was trying to get warmer with Iran. The attack was likely carried out by some Saudi group, al-Qaeda or something similar.
Porter concludes:

The result of Freeh’s blatant pro-Saudi bias was that Osama bin Laden was allowed more years of unhindered freedom in which to plan terrorist actions against the United States. Had Freeh not become an advocate of the interests of the regime whose representative in Washington eventually put him on his payroll, U.S. policy would presumably have been focused like a laser on Osama bin Laden and al Qaeda two years earlier.

And perhaps the disinterest of the George W. Bush administration’s national security team toward al Qaeda before 9/11 would have been impossible.

The Saudi motive for pointing to Iran as a culprit was to prevent a detente between the U.S. and Iran. Their own involvement and support for the attack is still unknown.

Can we expect some similar event as Obama tries to engage Iran?