The crisis was described by the American media as a "revenge and mutual incomprehension". In Iran, hostage-taking was widely seen as a blow against the United States and its influence in Iran by followers of Ayatollah Khomeini, in what the Islamist faction called attempts to undermine the perception of the Iranian revolution, and its permanent support of the recently overthrown Shah Mohammad Reza Pahlevi of Iran. After his overthrow, the Shah was allowed to travel to the USA. to receive medical treatment. The Islamist rebels demanded the US to extradite the Shah back to Iran to judge him for crimes committed by his government during his reign over ordinary citizens with the help of his secret police, the SAVAK. In Iran, the asylum granted by the USA for the Shah was seen as an act of complicity.
In the United States the taking of hostages was seen as an outrage on the part of the Islamist movement that violated the principle of international law on the immunity and inviolability of diplomats and their embassies.
Carter refused to yield to the demands, Khomeini used the situation to consolidate his power and nullify the challenges of the moderate wing of his government, headed by its president. The euphoria over the humiliation of the most powerful nation distracted the Iranian people from the economic difficulties of their country. Carter, in April 1980, broke diplomatic relations with Iran and imposed a trade embargo, except for medicine and food. Iranian funds in the US they were frozen and accounted to compensate the hostages when they were released and to pay the demands of US companies against Iran.
A problem of international relations became an electoral problem. His main rival, Republican Ronald Reagan, accused Carter of "being wrong from the beginning." Reagan stated: "The hostages must not have been held captive for six days, much less six months."