Question

As a result of a revolution in Iran during 1978 and 1979,
oil supplies to the US were disrupted, causing oil prices to rise.
the cartel of countries controlling part of the oil market decided to increase production.
the cartel of countries controlling part of the oil market decided to stop production.
the United States cut off diplomatic relations with Iran’s government.

Answer 1

It looks like these are possible consequences of the 1978–79 Iranian Revolution. Correctness of each statement:

1) True. The revolution sharply reduced Iran’s oil exports, disrupting supplies and contributing to the 1979 oil shock and higher world (and U.S.) oil prices.

2) False (misleading). OPEC countries did not unify in a way that immediately neutralized the shortfall; some producers tried to raise output but not enough to prevent the price spike. In short, production increases did not offset the disruption quickly enough.

3) False. The cartel did not collectively “stop production.” Production fell in Iran because of the revolution, but OPEC did not enact a cartel-wide production halt.

4) True. After the 1979 embassy seizure and subsequent events, the United States froze Iranian assets and in 1980 formally severed diplomatic relations with Iran.