The History of Iran: Constitution, Oil, and Revolution

For over a century, political movements in Iran have fought for national sovereignty, the rule of law, and political participation. External major powers have repeatedly interrupted or redirected this process. The Islamic Republic is the latest outcome so far, but likely not the final one.

The Constitutional Revolution: 1905–1911

Persia was an absolute monarchy at the beginning of the 20th century under the Qajar dynasty, which had ruled since the late 18th century. The state was politically weak, financially dependent, and heavily influenced by the Russian Empire and Great Britain.

The country financed itself mainly through foreign loans, primarily from the Russian Empire and the United Kingdom, granting economic concessions in return, including the tobacco concession of 1890. This dependence was further exacerbated by the Anglo-Russian Convention, which effectively divided Persia into two zones of influence: the Russian-controlled north and the British-dominated south.

The Tobacco protest of 1891–1892 was directed against Qajar rule and foreign companies' control of the domestic tobacco industry. Merchants, intellectuals, and the clergy organized a nationwide boycott. Women participated in it. This movement led to the Constitutional Revolution of 1905–1911, which abolished the absolute monarchy and introduced a constitution and a parliament.

Even back then, two political currents clashed: a secular-bourgeois wing, which sought to limit state power through laws and was oriented towards Western models, and a clerical wing, which aimed for a state based on Islamic legal principles. This fundamental conflict remained unresolved.

The new constitution did not apply to women

Women had contributed significantly to the constitutional movement, but were in the new constitution not taken into account. The document called for the equality of all citizens before the law, but explicitly excluded women from the definition of „citizen.“ Comprehensive civil liberties, including freedom of religion and the separation of church and state, also remained unachieved.

A state without a stable foundation

After the revolution, a constitution formally existed, but the state remained permanently unstable. Several coup attempts and dissolutions of parliament followed. The economy continued to be dependent on foreign loans. After the discovery of significant oil reserves, in 1909 the Anglo-Persian Oil Company was founded. When the country was later renamed Iran, the company also changed its name to the Anglo-Iranian Oil Company, the direct predecessor of today's energy conglomerate BP.

1911 the parliament brought in the American financial advisor Morgan Schuster, to reform state finances. Russia and Great Britain disapproved, invaded the country, and demanded his expulsion. Schuster resigned. The parliament was dissolved, and no budget was passed for the following years. Local governors, tribal leaders, and militias gained increasing control while state institutions lost influence.

Between the Fronts: Iran in World War I

During World War I, Persia officially declared itself neutral. Nevertheless, Great Britain and Russia took advantage of the country’s weakness to invade and wage war against the Ottoman Empire from there. The consequences were severe: Between 1917 and 1919 starved approximately two million people, millions more died of diseases.

Following the Russian Revolution of 1917, Russian troops withdrew. Britain pressured the Iranian government with bribes to sign the Anglo-Persian Treaty of 1919. The parliament refused. At the same time, the newly formed Soviet Union supported separatist movements in several provinces.

In this context, he/she/it distinguished himself/herself/itself Reza Khan Savadkuhi, Commander-in-Chief of the Cossack Brigade. After his coup in 1921, he crushed separatist movements, established a central army, and deposed the Qajar dynasty in 1925. He ascended the throne himself and took the title of Reza Shah Pahlavi and founded the Pahlavi dynasty. Britain tolerated this, seeing him as a stabilizer for the region.

Modernization through centralization

Reza Shah relied on Centralization and Modernization from above. He expanded the state apparatus militarily and administratively, suppressed tribal structures, and eliminated regional autonomies. Criminal and civil law was reformed along French lines, a national education system was developed, compulsory schooling was introduced, and a central bank was founded. This bank deprived the British Imperial Bank of Persia of the right to issue banknotes. Between 1928 and 1938, significant oil deposits were exploited, and new trade and customs agreements were concluded.

Part of this centralism was the imposition of a unified national identity in the multi-ethnic state. From 1935 on, the designation „Persia“ was to be replaced internationally by „Iran“replaced. Persian language and culture became the dominant force of the state, even overriding ethnic minorities, forcibly imposed. The Iranian solar calendar replaced the Arabic lunar calendar.

Women's policy between reform and control

The modernization policy also influenced the Women's movement. Independent women's organizations that had formed during the Constitutional Revolution were restricted or integrated into the state apparatus. In 1934, Reza Shah founded a state-controlled women's organization under the name Kaanoon-e Baanovaan, headed by his daughter. Ashraf Pahlavi. The parliament enacted more progressive marriage and divorce laws and invested in girls' education.

At the same time, a state decree prohibited the Veil of Modesty, all Islamic veils by force until Reza Shah's abdication. The clergy used this law to legitimize their opposition to the women's movement.

The government took increasingly repressive measures against the political opposition. Critics, intellectuals, and left-wing and communist groups were monitored, intimidated, and arrested. Independent parties had virtually no room to maneuver. The press and public expression of opinion were subject to censorship.

Iran in World War II

In the 1930s, Iran, under Reza Shah, had expanded its economic and technological relations with Germany. By 1940, 47 percent of Iranian exports to Germany, 43 percent of imports came from there. When the Allies feared that Germany might use strategically important infrastructure in Iran, British and Soviet troops moved in in 1941 and forced Reza Shah to abdicate. He died in exile in South Africa in 1944.

Mohammad Reza Pahlavi

His son Mohammad Reza Pahlavi was installed as the new Shah. While British troops withdrew after the war ended, Soviet troops remained in the country and once again supported autonomy movements, including the proclaimed Republic of Kurdistan in Mahabad. The young Shah sought help from the United States, which, under President Truman, exerted pressure on the Soviet Union. The Soviets eventually withdrew.

Parliamentarism and the Nationalization of Oil

In the 1940s, parliamentary democracy gained in importance. Various political parties, student organizations, and women’s organizations were formed. Different ideological currents, ranging from nationalism and liberalism to socialist and communist movements, openly competed in parliament. Marxist-Leninist Tudeh Party mobilized workers and intellectuals. An assassination attempt on the Shah in 1949 was blamed on party members, the party was temporarily banned, and many members fled to the Soviet Union. At the same time, a group formed with the National Front of Iran a broad coalition of nationalist and democratic forces.

Mohammad Mossadegh was appointed prime minister by the Shah in 1951 based on a parliamentary majority. He pushed through the nationalization of the oil industry: The National Iranian Oil Company was founded and took over the facilities of the former Anglo-Iranian Oil Company. Iran's share of oil production had previously been around 20 percent.

The Abadan Crisis and the Overthrow of Mosaddegh

In the years that followed, Great Britain attempted to reverse the nationalization. The conflict escalated into the Abadan Crisis. Domestically, Mossadegh increasingly relied on emergency powers to sustain his government. Against the backdrop of the Cold War, the United States, under President Eisenhower, shifted its stance 1953 in response to the British position, after the Churchill government had argued that Mossadegh might favor communist forces in Iran. In August 1953, Mossadegh dissolved the parliament through a referendum.

Operation Ajax

The British intelligence agency MI6 and the CIA organized in 1953 Operation Ajax with the aim of overthrowing Mossadegh. The operation involved exerting political influence, propaganda, mobilizing demonstrations, and supporting loyal military and security forces.

Mohammad Reza Pahlavi eventually signed a decree deposing Mossadegh, temporarily left the country, and returned after U.S.-backed forces had gained control of Tehran. Mossadegh was arrested and put on trial. The Shah’s power was significantly expanded, while the role of parliament and democratic forces was markedly curtailed.

SAVAK and Political Repression

A central instrument of this consolidation was the founded in 1957 with the support of Western intelligence agencies Domestic intelligence service SAVAK. He monitored political opponents, persecuted Marxist and Islamist opposition groups, and took action against members of banned parties like the Tudeh Party. Since many women's organizations were closely linked to political parties during this period, the regime also dissolved them. In 1959, 14 organizations were centralized under the umbrella organization of the Federation of Women's Organizations.

After 1954, an international Oil consortium the promotion and marketing of Iranian crude oil. Several American companies, as well as Royal Dutch Shell and a French company participated in the business, thereby reducing British influence. Initially, Iran received about half of the profits. However, the country did not retain direct control over production and distribution. Over the course of the 1960s and 1970s, state revenues continued to rise, also in the context of OPEC. The consortium agreement formally remained in force until 1979.

Reforms from Above: The White Revolution

In 1963, the Shah announced the „White Revolution”a reform program with land reforms, nationalization of forests, privatization of state-owned enterprises, a profit-sharing model for industrial workers, and the establishment of a literacy corps for rural regions. Under the Family Protection Act, women were granted the right to vote, the minimum age for marriage was initially raised to 15, later to 18, and their rights in divorce and custody matters were improved.

Parts of the Shiite clergy resisted. Religious leaders criticized land reforms that weakened their economic base, as well as changes to family law. The cleric Ruhollah Khomeini led the protests from June 5, 1963. The authorities used force against students at a religious school in Qom, and several people were killed. Khomeini was exiled in 1964, first to Iraq and later to France. There, he developed the political principle of welayat-e-faghih—the rule of the Supreme Jurist—recorded speeches and interviews on tape, and had them secretly distributed in Iran.

Social inequality despite growth

Between 1963 and 1979 Social inequality grew, despite economic expansion. Rising oil revenues fueled the development of infrastructure and cities, but profits were unevenly distributed. In major cities, a wealthy, often Western-oriented middle class and a small elite emerged, benefiting greatly from the state and the oil sector. At the same time, a large portion of the population, particularly in rural areas and expanding urban peripheries, lived in precarious conditions with inadequate access to education, housing, and social security.

The state simultaneously promoted education both domestically and abroad. Many students returned with a critical attitude against the authoritarian system. In urban academic circles, oppositional networks developed, encompassing secular, religious, socialist, and nationalist currents.

The 1979 Revolution

The Islamic Revolution of 1979 arose from a socially heterogeneous opposition movement. It united religious circles and parts of the Shiite clergy around Khomeini, urban workers from the oil sector, students, and intellectuals with democratic and social criticism demands, as well as parts of the urban middle class and merchants (Bazaris). What united these groups was their rejection of the authoritarian system, criticism of social inequality, and dissatisfaction with political repression.

Ab 1978 strikes, demonstrations, and nationwide mobilization expanded. In February 1979 The army declared its neutrality in parts. The Shah was no longer supported by his previous allies the USA, Great Britain, France, and Germany, and fled into exile in Egypt.

The Islamic Republic

For almost 50 years, the Islamic Republic of Iran as a political system where those forces have prevailed which Rule of the Jurist established. In their early phase it massively against political opponents and imprisoned and executed left-wing and communist groups. The system enabled parts of the previously economically disadvantaged rural population, who had migrated to informal settlements in the large cities, to have new opportunities for advancement. Over time, an economically privileged elite has emerged from these groups who now benefit from the system.

At the same time, a broad, young middle class is facing persistent unemployment, rising inflation, and limited prospects. The number of political prisoners has significantly increased compared to the Shah era. Political freedoms Freedom of opinion and the press are severely restricted, as are the rights of women and sexual, religious, and ethnic minorities.

Ideology and practice diverge.

The Islamic Republic sees itself as an axis of resistance against the West. How flexibly this positioning is managed in practice was demonstrated in the Iran-Iraq War of 1980–1988Despite anti-Western rhetoric, Iran accepted weapons from various sources, including Israel as well as European companies, including those from AustriaNoricum Affair).

Parts of the elite are also closely networked with the West: Children of officials studying at European and American universities, Wealth circulates on international financial structures.

Resistance as a Constant

The history of past decades shows that resistance in Iranian society always newly formed. Of the Student protests of 1999 about the Green Motion 2009 up to the nationwide protests since 2017 and the „Woman, Life, Freedom“ movement following the death of Jina Mahsa Amini 2022 large segments of the population repeatedly resist theocratic rule. According to the Human Rights Organization HRANA came during the protests in January 2026 more than 6.000 People around the world 50.000 more were arrested.

Whether external military intervention whether it could bring about a revolution, as claimed by the US and Israel, is questionable. Such an intervention would interfere with a process that large segments of the Iranian population have been working on since the Constitutional Revolution of 1905–1911 and for which they have paid a high price over generations.

The Core requirements have remained the same: national sovereignty, political participation, the rule of law, equality before the law, individual freedoms, and a limited state power accountable to the people.