As Iran and the shah adjusted to life after the coup, the monarch tried to solidify his ties to the United States. This entailed military support from America and Iran’s renewed commitment to the US side in the Cold War. Iran created an internal security force, SAVAK, trained in part by America. The shah clamped down on Communist activities and confronted rising Islamic dissent with violence. At the same, the Shah pursued social programs and launched the White Revolution, which America supported. However, its platform, especially women’s suffrage and land reform, triggered widespread opposition. Ayatollah Khomeini emerged as the leader of Islamist dissent in 1963 and was eventually exiled. America and Iran had to brace themselves for the fallout of these events.

This chapter examines the consolidation of Pahlavi rule after the removal of Reza Shah from power, especially after 1953, when the reign of Mohammad Reza Pahlavi was reestablished following a CIA-sponsored coup. The chapter explores the tenuous beginnings of the reign of the new Shah, the increasing legislative and policy-making significance of the Majles in the 1940s, and the era of oil nationalization, from 1951 to 1953. Prime Minister Mohammad Mosaddeq was successful in getting the powers of the monarchy to be significantly reduced, but his overthrow was followed by the restoration of absolute monarchy built on a massive army and a feared secret service called SAVAK. Ultimately, however, the Pahlavi state failed to incorporate within its orbit and its social base remained weak. As the oil revenues began to lag, and the state was forced into making “housecleaning” concessions, it began to crumble under the weight of the gathering storm.