America's Foreign Policy Practice Exam 2025 – Comprehensive Test Prep

The Iranian Revolution, which took place in 1979, led to significant disruptions in Iran's oil production and exports. As a major oil producer, Iran's political upheaval and the subsequent shift in governance created uncertainty in the international oil market. This instability caused a reduction in the amount of oil available globally, leading to fears of supply shortages. As a result, the global oil prices experienced significant hikes due to these supply constraints.

Additionally, the revolution and its aftermath contributed to geopolitical tensions in the Middle East, further affecting oil markets. Countries dependent on Iranian oil or politically entwined with the region felt the impact of these changes. The combination of reduced supply and increased geopolitical uncertainty fueled inflationary pressures in oil prices worldwide, making the option of substantial price hikes the most accurate reflection of the revolution's impact on global oil economics.