Establishment

Persia on the eve of Reza Shah Pahlavi's coup

In 1925, Reza Khan, a former Brigadier-General of the Persian Cossack Brigade, deposed the Qajar dynasty and declared himself king (shah), adopting the dynastic name of Pahlavi, which recalls the Middle Persian language of the Sasanian Empire.^[7] (He had chosen the last name Pahlavi for himself in November 1919.^[8]) By the mid-1930s, Reza Shah's strong secular rule caused dissatisfaction among some groups, particularly the clergy, who opposed his reforms, but the middle and upper-middle class of Iran liked what Rezā Shāh did. In 1935, Rezā Shāh issued a decree asking foreign delegates to use the term Iran in formal correspondence, in accordance with the fact that "Persia" was a term used by Western people for the country called "Iran" in Persian. His successor, Mohammad Reza Pahlavi, announced in 1959 that both Persia and Iran were acceptable and could be used interchangeably.

Reza Shah tried to avoid involvement with the UK and the Soviet Union. Though many of his development projects required foreign technical expertise, he avoided awarding contracts to British and Soviet companies because of dissatisfaction during the Qajar Dynasty between Persia, the UK, and the Soviets. Although the UK, through its ownership of the Anglo-Iranian Oil Company, controlled all of Iran's oil resources, Rezā Shāh preferred to obtain technical assistance from Germany, France, Italy and other European countries. This created problems for Iran after 1939, when Germany and Britain became enemies in World War II. Reza Shah proclaimed Iran as a neutral country, but Britain insisted that German engineers and technicians in Iran were spies with missions to sabotage British oil facilities in southwestern Iran. Britain demanded that Iran expel all German citizens, but Rezā Shāh refused, claiming this would adversely affect his development projects.

World War II

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Iran claimed to be a neutral country during the opening years of World War II. In April 1941, the war reached Iran's borders when Rashid Ali, with assistance from Germany and Italy, launched the 1941 Iraqi coup d'état, sparking the Anglo-Iraqi War of May 1941. Germany and Italy quickly sent the pro-Axis forces in Iraq military aid from Syria but during the period from May to July the British and their allies defeated the pro-Axis forces in Iraq and later Syria and Lebanon.

In June 1941, Nazi Germany broke the Molotov–Ribbentrop Pact and invaded the Soviet Union, Iran's northern neighbor. The Soviets quickly allied themselves with the Allied countries and in July and August 1941 the British demanded that the Iranian government expel all Germans from Iran. Reza Shah refused to expel the Germans and on 25 August 1941, the British and Soviets launched a surprise invasion and Reza Shah's government quickly surrendered after less than a week of fighting.^[9] The invasion's strategic purpose was to secure a supply line to the USSR (later named the Persian Corridor), secure the oil fields and Abadan Refinery (of the UK-owned Anglo-Iranian Oil Company), and limit German influence in Iran. Following the invasion, on 16 September 1941 Reza Shah abdicated and was replaced by Mohammad Reza Pahlavi, his 21-year-old son.^[10][11][12]

The Allied "Big Three" at the 1943 Tehran Conference

During the rest of World War II, Iran became a major conduit for British and American aid to the Soviet Union and an avenue through which over 120,000 Polish refugees and Polish Armed Forces fled the Axis advance.^[13] At the 1943 Tehran Conference, the Allied "Big Three"—Joseph Stalin, Franklin D. Roosevelt, and Winston Churchill—issued the Tehran Declaration to guarantee the post-war independence and boundaries of Iran.

On 13 September 1943 the Allies reassured the Iranians that all foreign troops would leave by 2 March 1946.^[14] At the time, the Tudeh Party of Iran, a communist party that was already influential and had parliamentary representation, was becoming increasingly militant, especially in the North. This promoted actions from the side of the government, including attempts of the Iranian armed forces to restore order in the Northern provinces. While the Tudeh headquarters in Tehran were occupied and the Isfahan branch crushed, the Soviet troops present in the Northern parts of the country prevented the Iranian forces from entering. Thus, by November 1945 Azerbaijan had become an autonomous state helped by the Tudeh party.^[14][15] This pro-Soviet nominal-government fell by November 1946, after support from the United States for Iran to reclaim the regions that declared themselves autonomous.

At the end of the war, Soviet troops remained in Iran and established two puppet states in north-western Iran, namely the People's Government of Azerbaijan and the Republic of Mahabad. This led to the Iran crisis of 1946, one of the first confrontations of the Cold War, which ended after oil concessions were promised to the USSR and Soviet forces withdrew from Iran proper in May 1946. The two puppet states were soon overthrown and the oil concessions were later revoked.^[16][17]

Cold War

Mohammed Reza Pahlavi and his wife Farah Diba upon his coronation as the Shah of Iran. His wife was crowned as the Shahbanu of Iran.

Mohammad Reza Pahlavi replaced his father on the throne on 16 September 1941. He wanted to continue the reform policies of his father, but a contest for control of the government soon erupted between him and an older professional politician, the nationalistic Mohammad Mosaddegh.

In 1951, the Majlis (the Parliament of Iran) named Mohammad Mossadegh as new prime minister by a vote of 79–12, who shortly after nationalized the British-owned oil industry (see Abadan Crisis). Mossadegh was opposed by the Shah who feared a resulting oil embargo imposed by the West would leave Iran in economic ruin. The Shah fled Iran but returned when the United Kingdom and the United States staged a coup against Mossadegh in August 1953 (see 1953 Iranian coup d'état). Mossadegh was then arrested by pro-Shah army forces.

Following the overthrow of Mossadegh, Iran became steadfastly geopolitically aligned with the United States. During the presidential term of John F. Kennedy, the United States saw Iran as an important ally in the region due to perceiving it as a rare source of stability in the Middle East.^[18]

On 12–16 October 1971, an elaborate set of celebrations and festivities for the 2,500-year celebration of the Persian Empire occurred in commemoration of the founding of the Achaemenid Empire by Cyrus the Great.

Collapse of the Monarchy

The last Shah of Iran meets with clergy members

The Shah's government suppressed its opponents with the help of Iran's security and intelligence secret police, SAVAK. Such opponents included leftists and Islamists.

By the mid-1970s, relying on increased oil revenues, Mohammad Reza began a series of even more ambitious and bolder plans for the progress of his country and the march toward the "White Revolution". But his socioeconomic advances increasingly irritated the clergy. Islamic leaders, particularly the exiled cleric Ayatollah Ruhollah Khomeini, were able to focus this discontent with an ideology tied to Islamic principles that called for the overthrow of the Shah and the return to Islamic traditions, called the Islamic revolution. The Pahlavi regime collapsed following widespread uprisings in 1978 and 1979. The Islamic Revolution dissolved the SAVAK and replaced it with the SAVAMA. It was run after the revolution, according to U.S. sources and Iranian exile sources in the US and in Paris, by Gen. Hossein Fardoust, who was deputy chief of SAVAK under Mohammad Reza's reign, and a friend from boyhood of the deposed monarch.

Mohammad Reza fled the country, seeking medical treatment in Egypt, Mexico, the United States, and Panama, and finally resettled with his family in Egypt as a guest of Anwar Sadat. On his death, his son Reza Pahlavi, who was formally invested as Crown Prince on 26 October 1967, succeeded him as head of the Pahlavi dynasty.^[19] Reza Pahlavi and his wife live in the United States in Potomac, Maryland, with three daughters.^[20]

As of 2013, Reza Pahlavi established the National Council of Iran in Paris, which serves as a government in exile to reclaim the former throne after a potential overthrow of the current Islamic Republic government.^[6] However, in February 2019, Pahlavi launched an initiative called the Phoenix Project of Iran. According to the National Interest, this is "designed to bring the various strains of the opposition closer to a common vision for a post-clerical Iran."^[21]