Shah with JFK

In 1978, protests against Shah's Westernizing policies grew, led by exiled Ayatollah Khomeini. Tensions escalated with the deadly Cinema Rex fire and the 'Black Friday' massacre, leading to nationwide strikes. In January 1979, the Shah left Iran, ending 2,500 years of monarchy. Khomeini returned from exile in February, creating an Islamic Revolutionary Government, enforcing strict Islamic law, and leading Iran away from Western influence, marking the start of the Islamic Republic of Iran.

The Shah's increasing estrangement from the populace led to growing civil unrest throughout Iran in 1978. His attempt to modernize Iran along Western lines and the perceived neglect of Islam provoked condemnation from religious leaders. Among them, Ayatollah Ruhollah Khomeini, a charismatic cleric, played a significant role. Khomeini had been exiled to Iraq (later France) in 1964 for his harsh criticism of the Shah's regime. He used cassette tapes and radio broadcasts to disseminate his speeches and revolutionary messages, which were smuggled into Iran and spread among the people.

The Cinema Rex fire in Abadan on August 19, 1978, marks a pivotal point in the unfolding revolution. Anti-Shah militants barricaded the doors and set the building ablaze, killing more than 400 people inside. Although the Shah's regime blamed Islamic extremists, many Iranians believed this to be a false flag operation conducted by SAVAK (Iranian secret police) to turn public sentiment against the opposition. The event fueled further public outrage against the Shah.

On "Black Friday," September 8, 1978, the military declared martial law and opened fire on thousands of demonstrators in Tehran's Jaleh Square. The Shah's forces killed several hundreds, and possibly thousands, of people, which marked a point of no return for the revolution. The tragic event triggered nationwide strikes and protests, which paralyzed the country and eroded the remaining support for the Shah among Iran's middle classes and intelligentsia.

In January 1979, as the situation deteriorated, the Shah left Iran "on vacation," appointing a regency council to rule in his absence. However, his departure was effectively an exile, as he was not to return. His departure marked the end of 2,500 years of monarchical rule in Iran.

On February 1, 1979, Ayatollah Khomeini returned from exile. Over 2 million people lined the streets of Tehran to welcome him, signifying the tremendous support he enjoyed among the Iranian populace. Khomeini declared an Islamic provisional government on February 11, 1979, marking the official end of the Pahlavi dynasty and the beginning of the Islamic Republic of Iran. Under his leadership, Iran underwent significant political, social, and economic changes, marking a departure from its previous Western-oriented trajectory. This period was characterized by the enforcement of strict Islamic law, the elimination of Western and secular influences, and a foreign policy defined by anti-American and anti-Western sentiments.