The 1979 oil crisis in the United States

United States

The United States of America is a federal constitutional republic comprising fifty states and a federal district...

 occurred in the wake of the Iranian Revolution

Iranian Revolution

The Iranian Revolution refers to events involving the overthrow of Iran's monarchy under Shah Mohammad Reza Pahlavi and its replacement with an Islamic republic under Ayatollah Ruhollah Khomeini, the leader of the...

. Amid massive protests, the Shah of Iran

Pahlavi dynasty

The Pahlavi dynasty consisted of two Iranian/Persian monarchs, father and son Reza Shah Pahlavi and Mohammad Reza Shah Pahlavi The Pahlavi dynasty consisted of two Iranian/Persian monarchs, father and son Reza Shah Pahlavi (reg. 1925–1941) and Mohammad Reza Shah Pahlavi The Pahlavi dynasty ...

, Mohammad Reza Pahlavi

Mohammad Reza Pahlavi

Mohammad Rezā Shāh Pahlavi, Shah of Iran, Shah of Persia , ruled Iran from 16 September 1941 until his overthrow by the Iranian Revolution on 11 February 1979...

, fled his country in early 1979 and the Ayatollah

Ayatollah

Ayatollah is a high ranking title given to Usuli Twelver Shī‘ah clerics. Those who carry the title are experts in Islamic studies such as jurisprudence, ethics, and philosophy and usually teach in Islamic seminaries. The next lower clerical rank is Hojatoleslam wal-muslemin...

 Khomeini

Ruhollah Khomeini

Grand Ayatollah Sayyed Ruhollah Musavi Khomeini was an Iranian religious leader and politician, and leader of the 1979 Iranian Revolution which saw the overthrow of Mohammad Reza Pahlavi, the Shah of Iran...

 soon became the new leader of Iran

Iran

Iran , officially the Islamic Republic of Iran , is a country in Southern and Western Asia. The name "Iran" has been in use natively since the Sassanian era and came into use internationally in 1935, before which the country was known to the Western world as Persia...

. Protests severely disrupted the Iranian oil sector, with production being greatly curtailed and exports suspended. When oil exports were later resumed under the new regime, they were inconsistent and at a lower volume, which pushed prices up.