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Iran was ruled by a shah and it was an independent country. It’s oil field were controlled by a British company (Anglo-Iranian Oil), which paid the Shah’s government for the right to operate them -
The Iranians demanded that their government take control of the oil fields. So the Iranian Parliament then passed a law to nationalize the oil industry (the British were not happy with this).
The leading Iranian nationalist Mohammed Mossadeq, said: "The oil resources of Iran, like its soil, its rivers and mountains, are the property of the people of Iran." gained huge popular support, in consequence the Shah inade him Prime Minister. -
The US joined the British in overthrowing Mossadeq, as they played on America's fear of Communism (Iran had a long border with Soviet Russia).
Under this pressure the Shah dismissed Mossadeq and imprisoned him. He replaced him with a more pro-Western Prime Minister. Following this coup, A group of Western oil companies restarted the production, in return for a 40% share in Iran's oil profits. In consequence, Iran grew rich on income from the oil industry. -
The Shah faced increasing opposition. The opposition was led by the mullahs (Muslim religious leader). They criticized the Shah's close relations with the non-Muslim West and encouraged street demonstrations, which targeted banks. Consequently, the Shah's secret police arrested, exiled, imprisoned and tortured thousands of the government's critics, including mullahs. -
They were huge strikes and demonstrations, calling on the Shah to abdicate. Every time the Shah's army and police killed people in these protests, There followed even bigger demonstrations.
By the end of 1978, some soldiers were refusing to fire on crowds, as many of them, especially conscripts, sympathised with the protestors. -
The Shah left Iran in order to receive treatment for cancer. So, Khomeini returned in triumph and declared an Islamic revolution. Although Khomeini was not president or prime minister, he held ultimate power as the 'supreme leader'. He had the final say in government and law-making and made new laws, based on the Koran, the Muslim holy book.
He was anxious to extend the Islamic revolution. -
The USA was seen as the main enemy in Iran and came to be known as ‘the Great Satan’. Because, the US government declared Iran to be an international 'outlaw'.
Also, Ayatollah Khomeini accused the Iraq government of being 'atheist' and 'corrupt'. He called on them to: “Wake up and topple this corrupt regime in your Islamic country before, in one of his bro asts to the people of it is too late.” -
There were negotiations in 1980 and 1981 between the United States Government and the Iranian Government to end the Iranian hostage crisis. The 52 American hostages, seized from the US Embassy in Tehran in November 1979, were finally released on 20 January 1981. "Here’s a look at how the 1979 Iran hostage crisis unfolded": https://youtu.be/78IPERSxc70