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Iran was ruled by a Shah. Iran was an independent country but its oil fields were controlled by a British company

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A huge number of Iranians demanded that their government should take control of the oil fields

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The leading Iranian nationalist Mohammed Mossadeq said. "The oil resources of Iran, like its rivers and mountains, are the property of the people of Iran"

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He gained huge popular support and in 1951 the Shah made him Prime Minister

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The British company withdrew and refused to allow any of its technicians to work with the new Iranian National Oil Company
(They also persuaded other Western oil companies not to buy Iran's oil)

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The British persuaded the usa to join them in overthrowing Mossadeq. So under pressue the Shah dismissed Mossadeq and replaced him with a more pro-Western Prime Minister.
(He put Mossadeq into a trial and then he was imprisioned)

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The Shah new government signed a treaty with the USA and a year later joined Britain, Turkey and Iraq in an anti-Soviet alliance

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The Shah faced increasing opposition, led by the mullahs (Muslim religious leader), they criticised the corruption, wealth and luxury of the Shah

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The Shah held a huge celebration of what he claimed the 2500th aniversary of the Persian Monarchy. Very few people believed on this claim.

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In response on oppositon the Shah's secret police arrested, exiled, imprisones and tortured thousad of the government's critics, including mullahs

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There were huge strikes and demostartions calling on the Shah to abdicate

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The government introduced military rule and the next day, troops killed 500 people in a massive demonstartion.

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There was a wave of strikes which brought most industry, including oil production, into a halt

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Some soldiers were refusing to fire on crowds, many of them sympathised with the protestors

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The Shah left Iran in order to recieve treatment for cancer, he never returned. So Ayatollah Khomeini returned to power with an Islamic Revolution

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Because of the actions of the USA Iranian students stormed the US embassi in Tehran and took 50 of the American staff as hostages. Ths US government declared Iran to be an international 'outlaw'

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Ayatollah had a huge support but there were other groups competing for power in Iran like the Communist Party and middle-class liberals that wanted a Western-styled democracy

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Ayatollah supporters organised in the Islamic Republican Party, that dominated the Parliament and hold key positions in the government