money & economicsWikipedia1979 · Washington, D.C., USA

Carter cut off Iranian oil imports eight days into the hostage crisis

the gist

On 12 November 1979, eight days after 66 Americans were taken hostage at the US Embassy in Tehran, President Jimmy Carter ordered a halt to all petroleum imports from Iran. The hostage-takers, students who called themselves the Muslim Student Followers of the Imam's Line, demanded that the US extradite Iran's former king Mohammad Reza Pahlavi, who had been admitted for cancer treatment. They had the backing of Ayatollah Ruhollah Khomeini. Fifty-two of the hostages were held until 20 January 1981.

so what

The oil halt was among the first economic sanctions in the crisis, and was followed by the freezing of Iranian assets. The crisis, which lasted 444 days, shaped US–Iran relations for decades and played a part in Carter's defeat in the 1980 election.

the bigger pattern

Economic sanctions as a first response to a diplomatic crisis became a standard tool, used again and again by the US against Iran in the decades after.

fun fact

The hostages were released minutes after Ronald Reagan was sworn in as president.

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