Which 1979 revolution caused a major oil supply shock and contributed to high inflation worldwide?

The Iranian Revolution caused a major oil supply shock and contributed to high inflation worldwide in 1979.

The revolution overthrew Iran’s monarchy and led to the establishment of the Islamic Republic. Political upheaval disrupted Iranian oil production, and the resulting uncertainty helped push world oil prices higher. Iran had been one of the largest oil producers and exporters.

The shock followed the 1973 oil crisis and added to existing inflationary pressure in industrial economies. Higher petroleum prices increased transportation, heating and production costs, while businesses passed part of those costs on to consumers.

The revolution was not the sole cause of late-1970s inflation. Monetary policy, wage-price dynamics and other supply pressures also mattered. The episode is often discussed alongside the second oil shock, which included the effects of the Iran–Iraq War beginning in 1980.