The Anglo-Iranian Oil Company is unable to continue operations and as a result Britain boycotts the purchase of Iranian oil. A power struggle between the Shah and Mossadeq ensues. 22 August - With the help of western backing, mainly due to oil interests in the country, the Shah overthrows Mossadeq in a coup d'etat staged by General Fazlollah Zahedi. He launches the 'White Revolution', a programme of land reform and social and economic modernization. September - The Shah's policies alienate the clergy and his authoritarian rule leads to riots, strikes and mass demonstrations.
Martial law is imposed.
They demand the extradition of the Shah, in the US at the time for medical treatment, to face trial in Iran. His government begins work on a major nationalization programme. July - The exiled Shah dies of cancer in Egypt. This marks the beginning of a war that will last eight years. 20 January - The American hostages are released ending 444 days in captivity.