Iran Location : Middle East, bordering the Gulf of Oman, the Persian Gulf, and the Caspian Sea, between Iraq and Pakistan
Capital City : Tehran
Curreny : Iranian rial (IRR)
Languages Spoken : Persian and Persian dialects 58%, Turkic and Turkic dialects 26%, Kurdish 9%, Luri 2%, Balochi 1%, Arabic 1%, Turkish 1%, other 2%
Climate : mostly arid or semiarid, subtropical along Caspian coast
National Holiday : Republic Day, 1 April (1979)
Background Information
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. Key current issues affecting the country include the pace of accepting outside modernizing influences and reconciliation between clerical control of the regime and popular government participation and widespread demands for reform.
Geographical Note
strategic location on the Persian Gulf and Strait of Hormuz, which are vital maritime pathways for crude oil transport
Economy
Iran's economy is a mixture of central planning, state ownership of oil and other large enterprises, village agriculture, and small-scale private trading and service ventures. President KHATAMI has continued to follow the market reform plans of former President RAFSANJANI and has indicated that he will pursue diversification of Iran's oil-reliant economy although he has made little progress toward that goal. The strong oil market in 1996 helped ease financial pressures on Iran and allowed for Tehran's timely debt service payments. Iran's financial situation tightened in 1997 and deteriorated further in 1998 because of lower oil prices. The subsequent rise in oil prices in 1999-2000 afforded Iran fiscal breathing room but does not solve Iran's structural economic problems, including the encouragement of foreign investment.
Religions
Shi'a Muslim 89%, Sunni Muslim 10%, Zoroastrian, Jewish, Christian, and Baha'i 1%
Ports : Abadan (largely destroyed in fighting during 1980-88 war), Ahvaz, Bandar 'Abbas, Bandar-e Anzali, Bushehr, Bandar-e Emam Khomeyni, Bandar-e Lengeh, Bandar-e Mahshahr, Bandar-e Torkaman, Chabahar (Bandar Beheshti), Jazireh-ye Khark, Jazireh-ye Lavan, Jazireh-ye Sirri, Khorramshahr (limited operation since November 1992), Now Shahr
International Disputes - Risks to travellers
: despite restored diplomatic relations in 1990, Iran lacks maritime boundary with Iraq and disputes land boundary, navigation channels, and other issues from eight-year war; UAE seeks United Arab League and other international support against Iran's occupation of Greater Tunb Island (called Tunb al Kubra in Arabic by UAE and Jazireh-ye Tonb-e Bozorg in Persian by Iran) and Lesser Tunb Island (called Tunb as Sughra in Arabic by UAE and Jazireh-ye Tonb-e Kuchek in Persian by Iran) and attempts to occupy completely a jointly administered island in the Persian Gulf (called Abu Musa in Arabic by UAE and Jazireh-ye Abu Musa in Persian by Iran); Iran insists on division of Caspian Sea into five equal sectors while Azerbaijan, Kazakhstan, Russia, and Turkmenistan have generally agreed upon equidistant seabed boundaries; Iran threatens to conduct oil exploration in Azerbaijani-claimed waters, while interdicting Azerbaijani activities
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