In August 1976, embarked on USS "Midway", the squadron conducted flight operations near the Korean peninsula following the Axe murder incident. In 1979, USS "Midway", with VF-161 embarked, deployed to the Gulf of Aden to relieve and maintain a U.S. carrier presence following the outbreak of fighting between North and South Yemen and the fall of the Shah of Iran. Following the Iranian seizure of the American Embassy in Teheran and the taking of American hostages on 4 November 1979, USS "Midway", with VF-161 embarked, proceeded to the Gulf of Oman and remained on station until relieved in early February 1980.