636. Revolution in Iran: Fall of the Shah (Part 1) - The Rest is History Recap

Podcast: The Rest is History

Published: 2026-01-19

Duration: 1 hr 18 min

Summary

The episode explores the complex political and social factors that led to the 1979 Iranian Revolution, highlighting the fall of Shah Mohammad Reza Pahlavi and the rise of Ayatollah Ruhollah Khomeini. It examines the relationship between the US and Iran, focusing on the roles of President Carter and the Shah.

What Happened

In the late 1970s, Iran was a critical ally of the United States, particularly in the Cold War context, serving as a bulwark against Soviet influence in the Middle East. However, despite its strategic importance, Iran was undergoing significant internal turmoil, driven by rapid modernization and increasing Western influence under Shah Mohammad Reza Pahlavi. This period saw Tehran's population swell from half a million in the 1940s to nearly 5 million by 1977, exacerbating social tensions as the traditional ways of life clashed with the Shah's modernization efforts known as the White Revolution.

The Shah, educated in Switzerland and a self-styled modernizer, leveraged Iran's burgeoning oil wealth to transform the nation into the world's second-largest oil exporter. Despite this economic boon, his regime was plagued by corruption and opulence, epitomized by a lavish court and multiple palaces. Meanwhile, the Shah's secret police, SAVAK, trained and funded by the CIA, brutally suppressed dissent, further alienating the populace.

President Jimmy Carter, who entered the White House as a moralistic outsider, initially approached foreign policy with a dovish stance. However, by the late 1970s, Carter's administration took a harder line against the Soviet Union. Despite being aware of the Shah's poor human rights record, Carter maintained strategic ties with Iran, even visiting Tehran and toasting the Shah's leadership on New Year's Eve 1977, unaware of the regime's impending collapse.

The Ayatollah Ruhollah Khomeini, exiled in Iraq, emerged as a potent symbol of resistance against the Shah. His sermons, smuggled into Iran, resonated with a young, frustrated population disillusioned by the Shah's perceived capitulation to Western powers. Khomeini's vision was deeply rooted in Shiite Islam, which emphasized themes of martyrdom and apocalyptic beliefs, challenging the secular modernization efforts of the Shah.

Economic struggles intensified in the late 1970s, with inflation reaching 15% annually, eroding the living standards of many Iranians. This economic discontent, coupled with Khomeini's religious rhetoric, fueled a cycle of protests beginning in January 1978, after a crackdown on a seminar led to deaths and subsequent memorial services. These protests escalated, marked by significant events like the Cinema Rex fire in August 1978 and the Jaleh Square massacre in September 1978.

By late 1978, the Shah's regime was in disarray. Revolutionary strike committees took control in some towns, leading to widespread unrest. US Ambassador William Sullivan, recognizing the deteriorating situation, sent a cable titled 'Thinking the Unthinkable' to Washington, suggesting the Shah's downfall was imminent and advocating for a potential deal with Khomeini. This misjudgment of the Shah's health and the role of Islam in the protests illustrated a significant intelligence failure by the US.

Key Insights