President Jimmy Carter formally announced that the United States would discontinue purchasing oil from Iran for delivery to the country. The decision came amid the growing crisis in Iran, where American diplomatic personnel had been held hostage since November 4 when militants seized the U.S. Embassy in Tehran. The directive was codified in Proclamation 4702, which stated that recent developments in Iran exacerbated the threat to U.S. national security posed by petroleum imports from Iran, and directed that no crude oil produced in Iran or petroleum products refined from such crude may enter the customs territory of the United States.
The action signaled a clear shift in U.S. policy toward Iran’s oil exports. Historically, Iran had been one of the major oil-producing countries and had supplied significant volumes of crude oil to industrial nations, including the United States. The Carter administration’s decision did not simply reflect a supply disruption in Iran’s oil output; it was an explicit prohibition of U.S. imports in response to Iran’s seizure of American hostages and the larger political crisis. In his remarks, President Carter emphasized that it was necessary to eliminate any suggestion that economic pressures could weaken the United States’ stand on basic issues of principle.
This policy move had both symbolic and practical significance. Symbolically, it demonstrated U.S. resolve in the face of hostage-taking and underscored the principle that the nation would not allow foreign-policy crises to be influenced by its dependence on imported oil. Practically, it addressed national-security concerns, as the proclamation cited advice from the Secretaries of the Treasury, Energy, State, and Defense that reliance on Iranian petroleum posed a threat. The move also involved consultation with other industrial nations through the International Energy Agency, reflecting the administration’s view that the oil-import halt should form part of an international effort.
On the domestic front, President Carter framed the import stop as part of a broader call for energy conservation. He urged every American citizen and business to redouble efforts to curtail the use of petroleum products in light of the decision. He also directed the Secretary of Energy to work with Congress, state and local officials, and industry leaders to develop additional measures for conservation and ensuring equitable distribution of petroleum products.
In the larger context of U.S. energy policy, the move reinforced the vulnerabilities of the American economy to disruptions in world oil markets. Iran’s role as a major oil producer had already become unstable due to strikes and the revolutionary turmoil at home. The U.S. embargo of Iranian oil imports signaled a recognition that energy security and foreign policy were deeply linked. It encouraged a renewed focus on diversifying supply sources, reducing dependence on single-country imports, and promoting conservation.
Moreover, the decision had implications for the global oil market. It contributed to tightening conditions and amplified concerns about supply stability. The loss of Iranian oil exports and the U.S. move to stop imports from Iran combined to raise awareness of the risks posed by political disruptions in oil-exporting states.
In summary, the November 12, 1979 import ban of Iranian oil under President Carter represented a pivotal moment in U.S. foreign-policy and energy-policy history. It expressed an unwavering stance on the protection of diplomatic personnel and national sovereignty. It also exposed the intersection of energy dependence and international security. The measure prompted action at home toward conservation and alternative sourcing, while signaling to the world that economic ties would not override fundamental U.S. policy positions.
References / More Knowledge:
“Oil Imports From Iran: Remarks Announcing Discontinuance of United States Imports,” Jimmy Carter, November 12, 1979. The American Presidency Project. https://www.presidency.ucsb.edu/documents/oil-imports-from-iran-remarks-announcing-discontinuance-united-states-imports
“Proclamation 4702—Imports of Petroleum and Petroleum Products From Iran,” Jimmy Carter, November 12, 1979. The American Presidency Project. https://www.presidency.ucsb.edu/documents/proclamation-4702-imports-petroleum-and-petroleum-products-from-iran
“U.S., Iran Declare Halt to Oil Trade,” John M. Goshko and Edward Walsh, The Washington Post, November 13, 1979. https://www.washingtonpost.com/archive/politics/1979/11/13/us-iran-declare-halt-to-oil-trade/0141298a-fe50-4fae-bc59-b71eb2614765/
“Jimmy Carter Shuts Down Oil Imports From Iran,” History.com Editors, November 12 (or 16) 1979. https://www.history.com/this-day-in-history/november-12/carter-shuts-down-oil-imports-from-iran
“The Iranian Oil Crisis,” The Heritage Foundation, February 28, 1979. https://www.heritage.org/middle-east/report/the-iranian-oil-crisis
“What Iran’s 1979 Revolution Meant For U.S. And Global Oil Markets,” Brookings Institution, March 5, 2019. https://www.brookings.edu/articles/what-irans-1979-revolution-meant-for-us-and-global-oil-markets/