In November of 1979, a group of Iranian college students and militant supporters of the Iranian Revolution completely overran the U.S. embassy in Tehran. The action was fueled by outrage over the United States' support for the Shah of Iran, Mohammed Reza Pahlavi, who had fled to the U.S. following the Iranian Revolution. The protesters seized the embassy, taking 90 American diplomats and citizens hostage, demanding the extradition of the Shah, who was undergoing medical treatment in the U.S. The situation quickly escalated, with the hostages held for a lengthy period, becoming a focal point of international attention. The Iranian government initially took a neutral position, allowing the takeover to progress without intervention.

As weeks turned into months, the hostage crisis became a significant political issue in the United States. President Jimmy Carter faced immense criticism for his handling of the situation. Various diplomatic efforts were attempted, including negotiations and economic sanctions against Iran, with little effect. The crisis severely damaged American prestige worldwide and highlighted the complexities of Middle Eastern politics.

On April 24, 1980, President Carter ordered a failed rescue attempt that further complicated relations with Iran. After 444 days of captivity, the hostages were finally released on January 20, 1981, coinciding with the inauguration of President Ronald Reagan. This crisis deeply affected U.S. foreign policy and perception of Iran, leading to a decades-long estrangement between the two nations.