During the outset of the 20th century, Iran struggled to maintain national independence in the face of growing colonial pressure with the Russians on one side and the British on the other. By 1907, Iran was carved up into two spheres of influence with Russia in the north and British in the south.
During the Fall of 1911, the Iranians with discontent of the ruling shah decided to form a constitution and a majlis (or parliament). However, Iran's motives for democratization hampered with the colonial powers' motives, and Russia, with the support of England, gave the majlis an ultimatum that would essentially nullify Iran's independence. The majlis refused, and Russian troops entered northern Iran; they brutally killed some of the leading constitutionalists. Other intellectuals and activists fled Iran. Russian troops stormed the majlis. Under threat of foreign occupation of Iran, the second majlis was dissolved. Though the parliament and the constitution were retained as Iran emerged from its first revolution of the 20th century, the spirit of constitutionalism was dealt a serious blow.
The Russians and the British sought to keep control of Iran against the Ottomans as it was a strategic location during the middle eastern theatre of WWI. But, World War I found Iran in difficult straits. Its economy was shattered, and the country suffered from a growing power vacuum. In 1921 Reza Khan led a group of soldiers into Tehran. He was made the military commander and eventually assuming the position of Shah overthrowing the Qajar dynasty that was in power since 1785.
By 1941, with the outbreak of World War II, the Persian Gulf and Iran's vast oil resources became critical for the success of the British Navy. Iran declared itself neutral, but Reza Shah, who had established strong cultural and technological ties with Germany, was perceived as problematic by the Allies. With Iran under virtual occupation by Allied forces, he was forced to abdicate his throne, and his young son, Mohammad Reza Pahlavi, was crowned as the new king. Reza Shah would die in exile in 1944
Mohammad Reza Pahlavi was twenty-two years old when he assumed his position as the Shah of Iran. Allied forces occupied much of the country. After the end of World War II, Russia continued to occupy regions of northern Iran. The young Shah visited the United States, meeting with US officials and addressing the United Nations. Under pressure, the USSR withdrew from Iranian territory. The 1940s saw a resurgence in parliamentarism in Iran. In 1949, Mohammad Mossadeq formed the National Front Party, with the aim of upholding the 1906 Constitution. One of the main goals of the National Front was to nationalize Iran's oil industry; the British continued to control most of Iran's oil revenue through the Anglo-Persian Oil Company. In 1951, the Shah appointed Mossadeq as prime minister. Mossadeq followed through on his plans to nationalize the oil industry, and the National Iranian Oil Company was formed. For many Iranians, Mossadeq became a nationalist leader. To some Western leaders with economic interests in the Middle East, his actions set an unwelcome precedent. In 1952 Mossadeq was named Time magazine's Man of the Year. In 1953 the British MI-6 and the CIA undertook Operation Ajax, which toppled Mossadeq from power. To many Iranians, Mossadeq became a symbol of yet another moment in history when foreign intervention played a pivotal role in thwarting a democratic movement in Iran. Meanwhile, as Iran emerged from the political unrest of the 1950s, its economy was in tatters.
Basically, the meddling of foreign powers in the Iranian government is what eventually led to the now hardcore Islamic country and has made the Iranian people (not this generation though) despise most western powers.