What Happened: The US let the shah, who has JUST been removed after having power over Iran into New York for medical treatment. Students that support Khomeni of his dis-likeness for Americans used that as an excuse to capture the US embassy in Iran & take everyone in there hostage. Khomeni publicly endorsed the capture. President Jimmy carter tried to negotiate to release the hostages, But ended up taking the remainder of his presidency to secure their release. Carter said that he wouldn't leave the White House until the hostages have been freed. The hostages were finally released when carter secured a deal through Switzerland and Algeria. But Iran didn't free the hostages until Roland Reagan had been sworn in as president.