 On
November 4, 1979 young Iranian militants seized the United
States Embassy, taking 66 Americans hostage and demanding
that the U.S. return the deposed Shah to Iran. Relations between
the Carter administration and Iran deteriorated over the ensuing
months as both governments wanted to avoid the appearance
of backing down to coercion.
The deadlock abated in the summer of 1980 when the Shah died
and his extradition ceased being an issue. Soon thereafter,
the Ayatollah Khomeini released his "Four Points,"
outlining his conditions for the release of the hostages.
Progress continued as the United States and Iran exchanged
proposals through Algerian intermediaries. Both sides accepted
a package deal on January 18, 1981. Financial complications
arising from inconsistency in the agreement prevented the
hostages from being released until two days later, on Reagan's
inauguration.
For more, see the Associated Press timeline
of events.
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