On 15 April 1992, "Mobile Bay" once again set sail for the Persian Gulf. En route, the ship and crew visited Sydney, Australia, to represent the U. S. Navy at the 50th Anniversary celebration of the Battle of Coral Sea. Sailing through the Straits of Hormuz in late May 1992, the ship began duties as the Persian Gulf Anti-Air Warfare Commander. "Mobile Bay" also played a vital role in Operation Southern Watch, the enforcement of the U. N.-mandated "No Fly Zone" over Southern Iraq. Returning to Japan in October, "Mobile Bay" participated in ANNUALEX-92, a major naval exercise involving units of the U. S. Navy and the Japanese Maritime Self Defense Force. "Mobile Bay" served as the Anti-Air Warfare Commander for a joint U. S. - Japanese flotilla.