The Arab-Israeli dispute also provoked an international
oil crisis. In 1960, a number of oil-producing states
formed the Organization of Petroleum Exporting Countries
(OPEC) to gain control over oil prices, but the organization
was not recognized by the foreign oil companies.
In the 1970s, a group of Arab oil states established
the Organization of Arab Petroleum Exporting Countries
(OAPEC) to use as a weapon to force Western governments
to abandon pro-Israeli policies. During the 1973
Yom Kippur War, some OPEC nations announced significant
increases in the price of oil to foreign countries. The
price hikes were accompanied by an apparent oil shortage
and created serious economic problems in the United
States and Europe as well as in the Third World. They
also proved to be a boon to oil-exporting countries, such
as Libya, now under the leadership of the militantly anti-
Western Colonel Muammar Qadhafi (b. 1942).
One of the key oil-exporting countries was Iran. Under
the leadership of Shah Mohammad Reza Pahlavi
(1919–1980), who had taken over from his father in
1941, Iran had become one of the richest countries in the
Middle East. Although relations with the West had occasionally
been fragile (especially after Prime Minister
Mossadeq had briefly attempted to nationalize the oil industry
in 1951), during the next twenty years, Iran became
a prime ally of the United States in the Middle East.
With encouragement from the United States, which
hoped that Iran could become a force for stability in the
Persian Gulf, the shah attempted to carry through a series
of social and economic reforms to transform the country
into the most advanced in the region.
Statistical evidence suggests that his efforts were succeeding.
Per capita income increased dramatically, literacy
rates improved, a modern communications infrastructure
took shape, and an affluent middle class emerged in
the capital of Tehran. Under the surface, however, trouble
was brewing. Despite an ambitious land reform pro-
gram, many peasants were still landless,
unemployment among intellectuals
was dangerously high, and the
urban middle class was squeezed by
high inflation. Housing costs had
skyrocketed, provoked in part by
the massive influx of foreigners attracted
by oil money.
Some of the unrest took the form
of religious discontent as millions
of devout Muslims looked with distaste
at a new Iranian civilization
based on greed, sexual license, and
material accumulation. Conservative
ulama opposed rampant government
corruption, the ostentation of
the shah’s court, and the extension of voting rights to
women. Some opposition elements took to terrorism
against wealthy Iranians or foreign residents in an attempt
to provoke social and political disorder. In response, the
shah’s U.S.-trained security police, the Savak, imprisoned
and sometimes tortured thousands of dissidents.
Leading the opposition was Ayatollah Ruholla Khomeini
(1900 –1989), an austere Shi’ite cleric who had
been exiled to Iraq and then to France because of his outspoken
opposition to the shah’s regime. From Paris, Khomeini
continued his attacks in print, on television, and in
radio broadcasts. By the late 1970s, large numbers of Iranians
began to respond to Khomeini’s diatribes against
the “satanic regime,” and demonstrations by his supporters
were repressed with ferocity by the police. But workers’
strikes (some of them in the oil fields, which reduced
government revenue) grew in intensity. In January 1979,
the shah appointed a moderate, Shapur Bakhtiar, as
prime minister and then left the country for medical
treatment.
Bakhtiar attempted to conciliate the rising opposition
and permitted Khomeini to return to Iran, where he demanded
the government’s resignation. With rising public
unrest and incipient revolt within the army, the government
collapsed and was replaced by a hastily formed Islamic
republic. The new government, which was dominated
by Shi’ite ulama under the guidance of Ayatollah
Khomeini, immediately began to introduce traditional Islamic
law. A new reign of terror ensued as supporters of
the shah were rounded up and executed.
Though much of the outside world focused on the U.S.
embassy in Tehran, where militants held a number of foreign
hostages, the Iranian Revolution involved much
more. In the eyes of the ayatollah and his followers, the
United States was “the great Satan,” the powerful protector
of Israel, and the enemy of Muslim
peoples everywhere. Furthermore,
it was responsible for the corruption
of Iranian society under the
shah. Now Khomeini demanded
that the shah be returned to Iran for
trial and that the United States
apologize for its acts against the
Iranian people. In response, the
Carter administration stopped buying
Iranian oil and froze Iranian assets
in the United States.
The effects of the disturbances in
Iran quickly spread beyond its borders.
Sunni militants briefly seized
the holy places in Mecca and began
to appeal to their brothers to launch similar revolutions
in Islamic countries around the world, including far-off
Malaysia and Indonesia. At the same time, ethnic unrest
emerged among the Kurdish minorities along the border.
In July 1980, the shah died of cancer in Cairo. With economic
conditions in Iran rapidly deteriorating, the Islamic
revolutionary government finally agreed to free the
hostages in return for the release of Iranian assets in the
United States. During the next few years, the intensity of
the Iranian Revolution moderated slightly, as the government
displayed a modest tolerance for a loosening of clerical
control over freedom of expression and social activities.
But rising criticism of rampant official corruption
and a high rate of inflation sparked a new wave of government
repression in the mid-1990s; newspapers were
censored, the universities were purged of disloyal or “un-
Islamic” elements, and religious militants raided private
homes in search of blasphemous activities.
In 1997, the moderate Islamic cleric Mohammad Khatemi
was elected president of Iran. Khatemi, whose surprising
victory reflected a growing desire among many
Iranians for a more pluralistic society open to the outside
world, signaled the tantalizing possibility that Iran might
wish to improve relations with the United States. During
the next few years, press censorship was relaxed, leading
to the emergence of several reformist newspapers and
magazines, and restrictions on women’s activities were relaxed.
But the new president faced severe pressures from
conservative elements to maintain the purity of Islamic
laws, and in April 2000, several reformist publications
were ordered to close by the judiciary for having printed
materials that “disparaged Islam.” Although student protests
erupted into the streets in 2003, hard-liners continued
to reject proposals to expand civil rights and limit the
power of the clerics.