Known as Persia until 1935, Iran became an Islamic republic in 1979 after the ruling monarchy was overthrown and the shah was forced into exile. Conservative clerical forces established a theocratic system of government with ultimate political authority nominally vested in a learned religious scholar.
Iran-US relations have been strained since a group of Iranian students seized the US Embassy in Tehran on November 4, 1979, and held it until January 20, 1981. During 1980-88, Iran fought a bloody, indecisive war with Iraq that eventually expanded into the Gulf and led to clashes between the US Navy and Iranian military forces between 1987-1988.
Source: CIA.gov
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