Background:
Known as Persia until 1935, Iran became an Islamic republic in 1979
after the ruling shah was forced into exile. Conservative clerical
forces established a theocratic system of government with ultimate
political authority vested in a learned religious scholar. A group
of Iranian students seized the US Embassy in Tehran on 4 November
1979 and held it until 20 January 1981. During 1980-88, Iran fought
a bloody, indecisive war with Iraq over disputed territory. Over the
past decade, popular dissatisfaction with the government, driven by
demographic changes, restrictive social policies, and poor economic
conditions, has created a powerful and enduring pressure for
political reform.