Arms and Oil

In 1979, after a decade of enormous increases in the price of oil, U.S. influence in the oil-rich Persian Gulf region declined sharply. Early in the year the Iranian revolution replaced the shah, the principal pro-American leader in the region, with rulers hostile to the United States and to its remaining friends around the Gulf. In December Soviet troops moved into Afghanistan, bringing the Soviets closer to the Gulf and the Indian Ocean. In the United States these events spurred the announceme