How did the iran hostage crisis affect the carter administration?

On November 4, 1979, Iranian students held hostage 52 Americans in the United States Embassy in Tehran, Iran. President Carter's continued failure to negotiate for their quick release and the military's unsuccessful rescue attempts damaged his bid for reelection. President Carter stopped all shipment of military parts to Iran and cut off oil imports from Iran. This move strained the relationship between the United States and Iran and affected the American economy. Gas prices soared because America depended on Iran for 4% of its daily oil usage. High unemployment rate, high inflation rate and the high prices of gas weakened the American economy and this issue made Carter lose his bid for reelection.

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