The Greek cruiser Elli was anchored in Tinos harbor on a peaceful summer day when, on August 15, 1940, it was struck by torpedoes fired by the Italian submarine Hajder. The incident occurred during a time of increased political tensions in the Mediterranean, as Italy sought to expand its influence in the region. The cruiser was hit while it was part of a naval exercise, leading to the ship sinking and the loss of several crew members, although exact numbers are contested. The aggressive act was incredibly provocative, considering it was during peacetime, which was not typical behavior during military engagements or diplomatic relations. The sinking of the Elli served as a direct challenge to Greek sovereignty and was perceived as a blatant act of aggression by Italy. This escalation significantly heightens the already fraught relations between Greece and Italy, eventually contributing to the outbreak of the Greco-Italian War just months later.

In response to the sinking of the Elli, the Greek government and military took immediate action to strengthen their naval capabilities and began to prepare for potential conflict. Public sentiment in Greece turned against Italy in the wake of this incident, increasing nationalistic fervor and resistance against any Italian aggression. The incident demonstrated the fragility of peace in the region and the readiness of both nations for warfare. It also catalyzed alliances and military postures among other nations in the area, as the Second World War continued to loom over Europe, straining international relations.