Known as Persia until 1935, Iran became an Islamic republic in 1979 after
the ruling shah was forced into exile. Conservative clerical forces subsequently
crushed westernizing liberal elements. Militant Iranian students seized
the US Embassy in Tehran on 4 November 1979 and held it until 20 January
1981. During 1980-88, Iran fought a bloody, indecisive war with Iraq over
disputed territory. The key current issue is how rapidly the country should
open up to the modernizing influences of the outside world.