Introduction: Known as Persia until 1935, Iran became an Islamic republic in 1979 after the ruling monarchy was overthrown and Shah Mohammad Reza PAHLAVI was forced into exile. Conservative clerical forces established a theocratic system of government with ultimate political authority vested in a learned religious scholar referred to commonly as the Supreme Leader who, according to the constitution, is accountable only to the Assembly of Experts - a popularly elected 86-member body of clerics. US-Iranian relations have been strained since a group of Iranian students seized the US Embassy in Tehran on 4 November 1979 and held it until 20 January 1981....

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Economic Overview: Iran is a significant regional economy with a large and fast-growing population (estimated at around 74 million people) and some of the world's largest oil and gas reserves.

The economy is heavily dependent on hydrocarbon exports and dominated by the oil industry, economic growth is strongly influenced by oil market developments. Around 80 per cent of total export earnings are generated from oil revenues. A goal of Iranian economic policy over the last 20 years or so has been diversification of the economy away from dependence on oil earnings.

Large state-owned enterprises dominate key industry ...

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