Iran and the Modern Middle
East: Regional and International
Politics II
Hoorcollege week 5: Iranian Revolution of 1979 and its
Impact on the Middle East
“The victory of the Islamic Revolution in Iran was an earthquake that upended
the political order in the Middle East, and the aftershocks are still being felt 40
years later,” is how VOA opens an article devoted to the impact of the 1979-
Revolution on February 10, 2019. The Revolution exerted an unprecedented
impact on the Middle East and beyond. This lecture will, therefore,
concentrate on the way Islamic Republic tried to export the Revolution to other
countries, how it promoted political Islam, the cult of martyrdom, and how
Iranian neighbors and international communities responded to the effects of
political Islam. Our attention will be on the principles and ideals of the
Revolution, examining several of these ideals, elaborated in original sources,
paying ample attention to the biography and views of Ayatollah Khomeini and
how he created an Islamic state.
Werkgroep week 5: Iranian Revolution of 1979 and its
Impact on the Middle East
Chapter 10: The White revolution and its opponents (1953-
1963)
Political Shifts Post-1953
1953 Coup: Overthrow of Prime Minister Mohammad Mossadegh ended Iran’s
experiment with participatory politics.
Return to autocratic rule under Mohammad Reza Shah.
Iran and the Modern Middle East: Regional and International Politics II 1
, Despite repression, a period of political stability emerged.
This system of governance remained largely unchanged until 1979, except for
a brief political opening in the early 1960s.
Economic Conditions
Urban middle class (both secular and bazaar-based) experienced relative
prosperity.
Despite economic growth, the regime struggled to convert prosperity into
political legitimacy or popular support.
Conditions in the Countryside
In the early 1960s, over 65% of the population lived in rural areas.
The Shah launched land reform (eslahat-e arzi) as part of the White
Revolution, aiming to modernize rural life.
Positive impacts:
Improved education and health care in rural regions.
Living standards rose modestly for rural populations.
Limitations and consequences:
Agricultural output improved only marginally.
Mass migration to urban areas continued unabated.
Rural reforms failed to alleviate structural inequalities.
Discontent grew among:
First-generation rural migrants (new urban poor),
Second-generation urbanized rural descendants,
These groups felt alienated and resentful toward privileged elites.
Broader Social Tensions
Socioeconomic reforms created winners and losers.
Rising social inequality and perceived injustice contributed to the buildup
of anti-regime sentiment that would later culminate in the 1979 Islamic
Iran and the Modern Middle East: Regional and International Politics II 2
, Revolution.
Iran as a U.S. Ally (Post-1953)
Political Realignment After the 1953 Coup
The Shah's rise to full power after 1953 was gradual but inevitable:
Backed by the Iranian military,
Supported by the United States.
General Fazlollah Zahedi, the coup’s central figure, became prime minister and
quickly suppressed dissent.
Oil Industry Restructuring (1954 Agreement)
A new oil consortium replaced the Anglo-Iranian Oil Company’s monopoly:
Created the Iranian Oil Participants Ltd. (IOP),
Included 8 major American, British, and European oil companies.
National Iranian Oil Company (NIOC) remained the formal owner, but:
The deal was modeled after ARAMCO in Saudi Arabia,
Profits were shared 50-50 between Iran and the IOP.
Despite formal recognition of oil nationalization, the deal:
Fell short of Mosaddeq’s original goals,
Was unpopular with the Iranian public,
Served as a face-saving compromise for the Shah and the U.S.
Economic Impact of Oil Revenues
Oil production and revenues surged dramatically between 1950 and 1969:
1950: Oil revenue = ~$45 million,
1969: Oil revenue = $905 million — over 20x increase.
Adjusted for inflation (~2.5% avg), real revenue rose ~18-fold.
Share of oil in government revenue:
Iran and the Modern Middle East: Regional and International Politics II 3
, 1949–1956: 37% of total revenue,
1965: 67%, and continued to rise into the 1970s.
U.S. Support and Military Involvement
The U.S. injected tens of millions of dollars into Iran in the 1950s–1960s:
Financial support that Mosaddeq was denied now flowed to the Shah,
Funds used to strengthen the regime’s military and bureaucratic apparatus.
The U.S. also provided:
Military training and advising,
Defense hardware and logistical support.
This bolstered the Shah’s prestige and helped consolidate his power.
Strategic Consequences
Iran became a cornerstone U.S. ally in the Middle East during the Cold War.
Oil revenues and U.S. backing formed the foundation of the
Shah’s authoritarian-modernizing state.
However, the unequal oil arrangements and visible foreign dependency also
fueled popular resentment.
The Anti-Baha’i Campaign (1950s–1960s)
Political & Religious Context
After the 1953 coup:
The Shah sought to consolidate power and rebuild ties with conservative
forces, especially the Shi‘i clergy.
Efforts were made to appease the ulama (religious scholars), particularly in
Qom.
Ayatollah Hossein Borujerdi, the most prominent cleric of the time:
Took leadership after Ayatollah Kashani’s eclipse post-1953.
Restored the traditional state–clergy alliance.
Iran and the Modern Middle East: Regional and International Politics II 4
East: Regional and International
Politics II
Hoorcollege week 5: Iranian Revolution of 1979 and its
Impact on the Middle East
“The victory of the Islamic Revolution in Iran was an earthquake that upended
the political order in the Middle East, and the aftershocks are still being felt 40
years later,” is how VOA opens an article devoted to the impact of the 1979-
Revolution on February 10, 2019. The Revolution exerted an unprecedented
impact on the Middle East and beyond. This lecture will, therefore,
concentrate on the way Islamic Republic tried to export the Revolution to other
countries, how it promoted political Islam, the cult of martyrdom, and how
Iranian neighbors and international communities responded to the effects of
political Islam. Our attention will be on the principles and ideals of the
Revolution, examining several of these ideals, elaborated in original sources,
paying ample attention to the biography and views of Ayatollah Khomeini and
how he created an Islamic state.
Werkgroep week 5: Iranian Revolution of 1979 and its
Impact on the Middle East
Chapter 10: The White revolution and its opponents (1953-
1963)
Political Shifts Post-1953
1953 Coup: Overthrow of Prime Minister Mohammad Mossadegh ended Iran’s
experiment with participatory politics.
Return to autocratic rule under Mohammad Reza Shah.
Iran and the Modern Middle East: Regional and International Politics II 1
, Despite repression, a period of political stability emerged.
This system of governance remained largely unchanged until 1979, except for
a brief political opening in the early 1960s.
Economic Conditions
Urban middle class (both secular and bazaar-based) experienced relative
prosperity.
Despite economic growth, the regime struggled to convert prosperity into
political legitimacy or popular support.
Conditions in the Countryside
In the early 1960s, over 65% of the population lived in rural areas.
The Shah launched land reform (eslahat-e arzi) as part of the White
Revolution, aiming to modernize rural life.
Positive impacts:
Improved education and health care in rural regions.
Living standards rose modestly for rural populations.
Limitations and consequences:
Agricultural output improved only marginally.
Mass migration to urban areas continued unabated.
Rural reforms failed to alleviate structural inequalities.
Discontent grew among:
First-generation rural migrants (new urban poor),
Second-generation urbanized rural descendants,
These groups felt alienated and resentful toward privileged elites.
Broader Social Tensions
Socioeconomic reforms created winners and losers.
Rising social inequality and perceived injustice contributed to the buildup
of anti-regime sentiment that would later culminate in the 1979 Islamic
Iran and the Modern Middle East: Regional and International Politics II 2
, Revolution.
Iran as a U.S. Ally (Post-1953)
Political Realignment After the 1953 Coup
The Shah's rise to full power after 1953 was gradual but inevitable:
Backed by the Iranian military,
Supported by the United States.
General Fazlollah Zahedi, the coup’s central figure, became prime minister and
quickly suppressed dissent.
Oil Industry Restructuring (1954 Agreement)
A new oil consortium replaced the Anglo-Iranian Oil Company’s monopoly:
Created the Iranian Oil Participants Ltd. (IOP),
Included 8 major American, British, and European oil companies.
National Iranian Oil Company (NIOC) remained the formal owner, but:
The deal was modeled after ARAMCO in Saudi Arabia,
Profits were shared 50-50 between Iran and the IOP.
Despite formal recognition of oil nationalization, the deal:
Fell short of Mosaddeq’s original goals,
Was unpopular with the Iranian public,
Served as a face-saving compromise for the Shah and the U.S.
Economic Impact of Oil Revenues
Oil production and revenues surged dramatically between 1950 and 1969:
1950: Oil revenue = ~$45 million,
1969: Oil revenue = $905 million — over 20x increase.
Adjusted for inflation (~2.5% avg), real revenue rose ~18-fold.
Share of oil in government revenue:
Iran and the Modern Middle East: Regional and International Politics II 3
, 1949–1956: 37% of total revenue,
1965: 67%, and continued to rise into the 1970s.
U.S. Support and Military Involvement
The U.S. injected tens of millions of dollars into Iran in the 1950s–1960s:
Financial support that Mosaddeq was denied now flowed to the Shah,
Funds used to strengthen the regime’s military and bureaucratic apparatus.
The U.S. also provided:
Military training and advising,
Defense hardware and logistical support.
This bolstered the Shah’s prestige and helped consolidate his power.
Strategic Consequences
Iran became a cornerstone U.S. ally in the Middle East during the Cold War.
Oil revenues and U.S. backing formed the foundation of the
Shah’s authoritarian-modernizing state.
However, the unequal oil arrangements and visible foreign dependency also
fueled popular resentment.
The Anti-Baha’i Campaign (1950s–1960s)
Political & Religious Context
After the 1953 coup:
The Shah sought to consolidate power and rebuild ties with conservative
forces, especially the Shi‘i clergy.
Efforts were made to appease the ulama (religious scholars), particularly in
Qom.
Ayatollah Hossein Borujerdi, the most prominent cleric of the time:
Took leadership after Ayatollah Kashani’s eclipse post-1953.
Restored the traditional state–clergy alliance.
Iran and the Modern Middle East: Regional and International Politics II 4
