The Iranian Hostage

Crisis and Revolution

Nationalization of Oil Companies
—  One of the immediate
postwar issues was OIL

—  1951 – Oil companies in

Iran nationalize
—  This feels an awful lot like a
step in the direction of
communism

—  1953 – U.S. implements a

plan: AJAX
—  Covert operatives overthrow
the Prime Minister,
Mohammad Mosaddegh
—  They elevate the power of
the Shah of Iran
 Life under the Shah
—  The Shah: Mohammad Reza:
—  Accomplishments: improved
education, expanded social
welfare, and many industrial
projects that promoted
economic growth
—  Attracted to the lifestyle of a
monarch (absolute ruler)
—  Believed the Iranian people
loved him
—  Relied on very brutal secret
police force to keep order à
the Savak
—  Denied freedom of speech and
other civil rights to the people
—  Many Iranians lived in poverty
during the time of his rule
 Oil Shocks
—  1973 – First Oil Shock
imposed as a result of the
U.S. supporting Israel in the
Yom Kippur War
—  Price of oil went up from $.
34 to $1.00 per gallon
—  Lines at the gas station were
2-3 hours

—  Iran makes a lot of money

from this
—  Shah goes on a HUGE
spending spree
—  From 1.4 billion to 9.4
billion à military spending
—  By 1977 military spending
accounted for about 40% of
Iranian budget
 Abuse of Power
—  As the Shah continues
spending mass amounts of
money of the military, the
economy begins to unravel
—  Cost of living increases
—  1971 – the 2500th anniversary
of the Persian Empire
—  Shah spends $200 million for
a lavish celebration: rebuild
part of the city, fly in foreign
dignitaries from all over the
world
—  Much of the country was living
in poverty at this time, and to
make matters worse, the
secret police were brutalizing
those who criticized the
situation
 Growing Dissent
—  The Shah was living a luxurious life while much of the population was
struggling

—  American ex-patriots living in Iran were making lots of money helping set up
planes and other technology
—  Very wealthy – had Iranian servants; lived like kings

—  Protests are in full force by 1978

—  Most Americans had no clue
 The Shah Leaves
—  As uprisings worsen, it
becomes unsafe for the Shah
to remain in Iran
—  He doesn’t know how to
respond
—  He has cancer and his years
are numbered
—  Can’t think of a way to end
the protests without an
absolute bloodbath

—  Protests heat up and the Shah

leaves the country January
1979
—  Was allowed into the U.S. for
much needed cancer treatment
 Ayatollah Ruhollah Khomeini
—  A Muslim religious leader – was
symbolic leader of protests

—  Had been exiled in France

—  His criticisms: life under the
Shah had exposed Iranians to
sinful, greedy desires
—  At this time American culture was
widespread in Iran, so Khomeini
and his followers held the belief
that American influence had only
brought down the moral fortitude
of Iranians – There was also
hatred for America due to its
support for the Shah
—  He called for a return to Islamic
fundamental ideals

—  Once the Shah left, Khomeini

returned to Iran, where he
received a hero’s welcome
 The Iranian Hostage Crisis
—  November 1979 a bunch of university
students decide to take over the U.S.
Embassy
—  The goal is to get the U.S. to hand over the
Shah

—  They cut the chains on the door of the

Embassy and enter pretty easily

—  They were wearing pictures of Khomeini on

their chests so that if shot, the media
would interpret this as American brutality
against some university students

—  They were eager for martyrdom, so it

would have done the U.S. Marines guarding
the embassy no good to shoot them

—  They only planned on holding down the

embassy for three days – instead,
Khomeini endorses this, calling for Iranians
to attack the “great satan.”

—  Hostages were blindfolded and ultimately

held for over 400 days
 Negotiations
—  The U.S. began negotiating
immediately
—  Problem: U.S. was
negotiating with Iranian
Parliament, who had
nothing to do with the
hostages
—  this was very unpopular for
the Iranian parliament, so
they resign quickly, which
makes it easy for Khomeini
to gain power and
authority in Iran

—  Operation Eagle Claw –

failed attempt to rescue
hostages – helicopters
crashed in a dust storm
—  Creates the sense that the
U.S. is really helpless in
the situation
 Khomeini Consolidates Power
—  Khomeini declared Iran an Islamic republic
—  He and his followers began setting up a new government
based on the teachings of Islam

—  Hundreds of officials of the shah's government were

tried in revolutionary courts and put to death by firing
squads

—  The Islamic government shut down newspapers and

magazines

—  It banned political parties and closed universities

—  It placed restrictions over the people's personal
freedoms

—  A new constitution made Khomeini the faqih (supreme

leader) of Iran

—  The new government was bitterly anti-American because

the United States had supported the shah
 Outcomes
—  Ultimately President Reagan negotiated the release
of the hostages

—  Iran became an Islamic Republic where the

teachings of Islam dominated political policy

—  This is America’s first real point of contact with

radical, political Islam

—  There are still tensions with Iran today