By mid-December, 1978, hundreds of thousands of people, led by religious leaders, came out in anti-government demonstrations. Weeks later -- on Jan. 16 1979 -- the Shah fled the country. Khomeini returned from exile that February and replaced the secular government with a theocracy ruled by Islamic religious leaders. In November, young supporters of Khomeini, angered by U.S. support of the Shah, stormed the U.S. Embassy in Tehran, taking 66 hostages.