The Rest Is History

638. Revolution in Iran: The Hostage Crisis (Part 3)

January 26, 2026

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  • The seizure of the US Embassy on November 4, 1979, by the 'Muslim students following the line of the Imam' was initially intended as a brief, symbolic sit-in, but rapidly escalated into a major geopolitical crisis involving 66 American hostages. 
  • Ayatollah Khomeini quickly recognized the political utility of the hostage crisis, using it to consolidate clerical power by forcing the resignation of moderate elements in the interim government, despite his initial surprise and instruction to release the occupiers. 
  • The US response was hampered by a failure to understand Khomeini's theological motivations (coining America as the 'Great Satan') and a critical error in judgment by President Carter in allowing the exiled Shah of Iran into the United States, which Ambassador Sullivan had explicitly warned would provoke an attack. 
  • The hostage crisis generated bizarre public reactions in the US, ranging from anti-war activists visiting Tehran to support for the Iranian cause, and the popularization of the 'yellow ribbon' symbol for the hostages' return. 
  • The death of the exiled Shah in July 1980 was met with harsh condemnation from the Islamic Republic, while former US President Richard Nixon publicly criticized President Jimmy Carter's treatment of the Shah. 
  • The ongoing hostage crisis, coupled with the Soviet invasion of Afghanistan in December 1979, created a perception of American weakness abroad and contributed to a severe domestic recession, leading Carter's team to consider drastic military action, culminating in the planning of a hostage rescue mission. 

Segments

Sponsors and Festival Announcement
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(00:00:02)
  • Key Takeaway: The Rest Is History Festival is scheduled for July 4th and 5th, 2026, at Hampton Court Palace, exclusively for club members.
  • Summary: The episode begins with advertisements for the Financial Times, Carvana, and Rinse. The hosts then announce the inaugural Rest is History Festival taking place in July 2026 at Hampton Court Palace. Entry to the festival is members-only, with options to join the club for a ballot entry or become an Athelstan for guaranteed tickets.
Embassy Storming Rationale
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(00:04:08)
  • Key Takeaway: The student occupiers, calling themselves the Muslim Students Following the Imam’s Line, protested US asylum for the Shah and American support for counter-revolutionary agents.
  • Summary: A recording of a female student activist outlines the protest’s goals against American imperialism and support for the Shah. Several hundred students broke into the US Embassy compound in Tehran on November 4, 1979, initially planning a brief occupation. Within days, 66 Americans were taken hostage, marking a dramatic and humiliating event for the US.
Post-Revolutionary Iran Context
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(00:08:26)
  • Key Takeaway: By Spring 1979, Khomeini’s clerical faction controlled the streets, leading to a referendum for an Islamic Republic and the establishment of Sharia courts.
  • Summary: The period following the Shah’s departure in January 1979 involved street battles and paramilitary violence, with Khomeini gaining initiative. Power concentrated among clerics, while the interim government under Mehdi Barzagan remained relatively weak. There was significant uncertainty about the future structure of the Islamic revolutionary state.
US Embassy Security History
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(00:14:22)
  • Key Takeaway: The US Embassy had already faced two attacks in 1978 and February 1979, leading Ambassador Sullivan to secure Khomeini’s personal assurance of future protection.
  • Summary: Due to the relationship with the Shah, the embassy was already a known target, having been attacked on Christmas Eve 1978. A more serious attack in February 1979 was defused by Ambassador William Sullivan, who received assurances from Khomeini’s Revolutionary Council. Despite these incidents, the US did not close the embassy, partly due to the importance of CIA listening posts and maintaining contact with moderates.
The Shah’s Exile Dilemma
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(00:19:28)
  • Key Takeaway: President Carter reversed his promise to admit the ailing Shah of Iran into the US, fearing it would trigger mass arrests and an embassy attack, despite warnings that not admitting him was a snub.
  • Summary: The Shah, sickly and miserable after fleeing, was asked to leave Morocco, but the US hesitated to grant him entry. Carter, concerned about the consequences for US diplomats, decided against welcoming the Shah, overruling advisors like Brzezinski who cited loyalty. The Shah eventually ended up in Mexico, with his health deteriorating, leading to his eventual admission to New York for treatment in October 1979.
Embassy Takeover Details
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(00:30:50)
  • Key Takeaway: The November 4, 1979, takeover was executed by about 300 students who brought food for three days, believing the occupation would be brief, similar to Western sit-ins.
  • Summary: The takeover occurred exactly one year before the US presidential election. Students, some carrying bolt cutters hidden under chadors, marched toward the embassy, initially appearing like standard street protests. Press attaché Barry Rosen witnessed the crowd climbing the gates, and the staff, vastly outnumbered by the disorganized but angry students, were quickly overwhelmed and taken prisoner.
Hostage Fate and Student Intent
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(00:42:40)
  • Key Takeaway: The 52 remaining hostages endured severe mistreatment, including beatings and solitary confinement, for 444 days, far exceeding the students’ initial expectation of a short sit-in.
  • Summary: The initial 66 hostages were reduced to 52 after women and African Americans were released for political messaging. The captors used the term ‘guests of our regime’ mockingly while subjecting prisoners to abuse, including mock Russian roulette. The six Americans who escaped capture did so via the Canadian consulate exit, leading to the ‘Argo’ rescue operation involving the CIA and Canadian government.
Khomeini’s Strategic Use of Hostages
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(00:45:21)
  • Key Takeaway: Khomeini quickly realized the hostages were too politically useful to release immediately, using the crisis to cement hardline control and sideline moderates in the government.
  • Summary: Khomeini’s initial reaction was surprise, ordering the students to leave, but he reversed course upon seeing the ecstatic public support for the action. He stated the hostages would be held until internal revolutionary work, like the constitution vote, was complete. The crisis immediately led to the resignation of the moderate interim government, strengthening the hardliners.
Media Framing and Carter’s Reaction
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(00:54:16)
  • Key Takeaway: The hostage crisis provided a clear, Manichaean ‘good versus evil’ narrative for American media, contrasting sharply with the ambiguity of the Vietnam War, which temporarily boosted Carter’s approval ratings.
  • Summary: Khomeini personalized the crisis, mocking Carter as weak and coining the term ‘Great Satan’ to describe America, reflecting a dualistic worldview. American networks ran nightly specials like ‘America Held Hostage,’ creating a stark, easily digestible narrative of innocent hostages versus howling mobs. Carter became consumed by the crisis, feeling personal guilt over admitting the Shah, though the initial public reaction provided a temporary rally-around-the-flag effect.
Hostage Visitors and Clergymen
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(00:58:26)
  • Key Takeaway: Anti-war activist William Sloane Coffin told hostages to stop feeling sorry for themselves during a Christmas visit.
  • Summary: Visitors to Tehran included anti-war left figures and clergymen, such as William Sloane Coffin, a veteran peace activist. Coffin told the hostages he envied their extended period of peace and quiet to rest and think. He later told American TV that few Americans heard the screams of tortured Iranians, a message the hostages did not want to hear.
Radical Activist Visits
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(00:59:34)
  • Key Takeaway: Native American activist John Thomas, who occupied Wounded Knee, led chants of ‘death to Carter’ at the embassy.
  • Summary: A few weeks after the clergymen, a group led by Native American activist John Thomas visited the embassy. Thomas had previously occupied Wounded Knee in 1973. He led the Iranian crowd in chanting ‘death to Carter’.
Yellow Ribbon Symbolism
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(01:00:10)
  • Key Takeaway: Penny Langin, wife of a senior diplomat hostage, popularized tying yellow ribbons around oak trees, inspired by a 1973 hit song.
  • Summary: Penny Langin, wife of diplomat Bruce Langin, tied a yellow ribbon around an oak tree, inspired by the song ‘Tie a Yellow Ribbon Round the Old Oak Tree.’ This act conveyed hope, leading many Americans to tie ribbons to trees, lampposts, and flags. President Jimmy Carter placed a yellow ribbon on his Christmas tree but refused to turn on the lights until the hostages returned.
Pro-War Demonstrations and Songs
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(01:03:38)
  • Key Takeaway: Pro-war sentiment manifested in extreme chants like ‘Nagasaki, Hiroshima, Why Not Iran?’ and multiple ‘Bomb Iran’ novelty songs.
  • Summary: Pro-war demonstrations occurred on college campuses, with students at Ohio State chanting ‘Nagasaki, Hiroshima, Why Not Iran?’ and Princeton students waving sheets reading ’nuke the Ayatollah.’ There were at least six different novelty songs released based on the Beach Boys’ ‘Barbara Ann,’ titled variations of ‘Bomb Iran.’
Ayatollah Doll Sales
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(01:04:38)
  • Key Takeaway: American toy companies began selling dolls of the Ayatollah, complete with rope and pins for ’torture equipment,’ as a ‘fabulous gift item.’
  • Summary: American toy companies started selling dolls of the Ayatollah, marketed to those wanting to ‘strike back.’ The advertising copy suggested purchasing rope and pins as torture equipment for the doll. A brothel in Nevada, the Mustang Ranch, posted a sign banning Iranian students until the hostages were released.
The Shah’s Exile and Death
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(01:05:34)
  • Key Takeaway: The Shah was forced from US care to Panama, where he was charged $21,000 a day and ’trolled’ by a Marxist sociology professor before dying in Egypt in July 1980.
  • Summary: The Shah was kicked out of the US by the Carter administration in December and sent to Panama, where General Torrijos charged him $21,000 daily for lodging. Torrijos assigned a Marxist sociology professor to supervise the exiled Shah, who still hoped to return to Iran. The Shah died in Egypt on July 27, 1980, with his supposed last words being ‘Iran is Iran.’
Reaction to Shah’s Death
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(01:07:53)
  • Key Takeaway: Radio Tehran declared the deceased Shah ’the bloodsucker of the century,’ while Richard Nixon flew economy class to Egypt to eulogize him as ‘a real man.’
  • Summary: The official Iranian news agency stated the Shah died in ‘disgrace, misery, and vagrancy,’ and Radio Tehran called him ’the bloodsucker of the century.’ Former President Richard Nixon attended the state funeral in Cairo, flying economy class to deliver a eulogy where he called the Shah ‘a real man’ and criticized Carter’s treatment of him.
Economic and Geopolitical Crises
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(01:10:40)
  • Key Takeaway: The US economy entered a deep recession in early 1980 due to high interest rates, while the perceived weakness emboldened radical Islam and led to the Soviet invasion of Afghanistan.
  • Summary: The Federal Reserve, under Paul Volcker, raised interest rates to nearly 18% to squeeze inflation, causing the US economy to enter a deep recession by January 1980, with millions of manufacturing jobs lost. Two weeks after the embassy seizure, militants occupied the Grand Mosque in Mecca, which Khomeini falsely claimed was an American plot, leading to anti-US riots globally. On Christmas Day 1979, the Kremlin invaded Afghanistan, which Carter called the greatest threat to peace since WWII.
Carter’s Political Pressure
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(01:14:43)
  • Key Takeaway: President Carter’s chief of staff reported that even his 12-year-old nephew questioned why the President ‘doesn’t actually do anything,’ reflecting public sentiment.
  • Summary: Carter’s approval ratings were tanking due to perceived weakness, leading advisors to believe they were doomed for the upcoming election. Hamilton Jordan’s nephew asked why the President did nothing, suggesting they needed someone like General Curtis LeMay. Despite this pressure, Carter decided on March 22, 1980, to consider a drastic rescue option.
Planning the Rescue Mission
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(01:15:33)
  • Key Takeaway: Carter authorized the planning of an ‘unbelievably jaw-droppingly audacious’ special forces mission to fly into Iran and rescue the hostages.
  • Summary: On March 22, 1980, Carter summoned his security team to consider a drastic option: an elite special forces unit flying into Iran. This plan aimed to make its way into Tehran to rescue the hostages. The success of this gamble would be revealed in the next episode of The Rest Is History.