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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.
The 1979 Iranian Revolution led to the overthrow of the US-backed Shah. In response to US support for the Shah, Iran disrupted oil exports to the US, which reduced global oil supply and drove up prices. The OPEC cartel did not increase or halt production as a direct result of this revolution, and while the US later cut diplomatic ties, the immediate major global economic impact was the oil supply disruption and price rise.
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A. oil supplies to the US were disrupted, causing oil prices to rise.