On November 4, 1979, a group of Iranian students stormed the American embassy in Tehran. Protesting the entry of the deposed Shah into the United States, they held 53 Americans hostage. For the next twelve months, the hostage situation was an ongoing American nightmare magnified by constant media attention. Confidence in President Carter eroded as a result of the Iran crisis, an oil shortage and resultant increase in gas prices, and eighteen-percent inflation. Carter's chances were further damaged by a tough primary battle against Massachusetts Senator Edward Kennedy.
While Carter had been the fresh face of 1976, this year the role of Washington outsider was played by the Republican nominee, Ronald Reagan. A former Hollywood actor who became governor of California in 1966, Reagan made a brief run for the presidency in 1968, and nearly beat Gerald Ford for the R
epublican nomination in 1976. Reagan's landslide victory was due not only to Carter's problems, but also to a demographic shift toward an aging population that was growing more conservative. Carter became the first Democratic incumbent to lose the presidency since Grover Cleveland in 1888. In a furt
her indignity, the Iranians waited until the moment of Reagan's inauguration to release the hostages.

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