 25% of national income  98% of export value  Reserves: 3 rd largest in ME 4 th largest in world

 many ethnic groups (Persian dominant group)  speak Farsi  Shia majority

 after WWII – friendly  Shah (king) Mohammad Reza Pahlavi looked to US for help with modernization  1950s-60s the shah used oil wealth for economic and social reforms: health care, education, water, roads, women given right to vote  Islamic based laws changed to laws based on justice  Shah’s reforms created a small wealthy class (westernized)

 religious leaders felt Islamic traditions were being replaced  alliance with US criticized  shah's gov't  corrupt  didn’t help the poor  used secret police to silence critics  1979 shah fled b/c of unrest

 fundamentalist against western influence  made Iran a theocracy: nation ruled by religious leaders  Koran basis of laws

 women wear veils in public and lost right to vote  banned western movies and music  52 Americans held hostage for 15 months  US imposed a trade boycott - hurt Iran's economy (video clip)

 use western technology, but reject values  nuclear weapons scandal  June 2009: President Ahmadinejad wins disputed re-election  06/13/iran.election/#cnnSTCVideo 06/13/iran.election/#cnnSTCVideo