Relations & Business with Iran
History: KS3, topic 14.1.11
The British Exploitation of Iran
Iran was not officially part of the British Empire. However, Britain and its private companies had a huge influence on Iranian (Persian) society.
Baron de Reuter
- In 1872, Baron de Reuter privately bought the rights to Iran's banks, currency, transportation infrastructure, and communication industries (including the telegraph system).
- This was an unprecedented deal completed by a British businessman, rather than the British government.
The Iranian sale of their industries
- The Shah was the monarch who ruled Iran.
- In 1891, the Shah sold Iran's tobacco industry to British businessmen for £15,000. The British company, Imperial Tobacco now owned all shops selling tobacco in Iran.
- In 1901, the Shah sold the rights to all Iranian oil to a British business, the Anglo Iranian Oil Company. This lease would last for 60 years.
- There was uproar and an Iranian Parliament called the Majlis was created as a result.
Test yourself on Relations & Business with Iran
What was the name of the Iranian monarch?