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| 1977 |
| | | A treaty provides for the gradual transfer of the Canal Zone from US to Panamanian control | |
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| 1978 |
| | | Sandinista guerrillas make a surprise attack on the National Palace in Nicaragua, taking more than 1000 people hostage | |
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| 1979 |
| | | A Sandinista junta, headed by Daniel Ortega, takes power in Nicaragua – bringing to an end four decades of brutal rule by the Somoza dynasty | |
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| 1979 |
| | | Daniel Ortega leads the Sandinistas to electoral victory in Nicaragua | |
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| 1979 |
| | | Opponents of the Sandinistas flee from Nicaragua into Honduras, where they become known as the Contras | |
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| 1980 |
| | | The USA ends all aid to Nicaragua and provides funds to train and equip the Contras in neighbouring Honduras | |
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| 1980 |
| | | Archbishop Oscar Romero, an exponent of liberation theology, is killed as he celebrates Mass in San Salvador | |
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| 1980 |
| | | A US helicopter mission fails disastrously in its attempt to rescue the embassy hostages in Tehran | |
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| 1981 |
| | | Iran releases the US embassy hostages immediately after the end of Jimmy Carter's presidency | |
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| 1982 |
| | | Congress in Washington passes the Boland Amendment, banning US military aid to the Contras | |
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