Iran

theocratic republic

<p>Known as Persia until 1935, Iran became an Islamic republic in 1979 after the ruling monarchy was overthrown and Shah Mohammad Reza PAHLAVI was forced into exile. Conservative clerical forces led by Ayatollah Ruhollah KHOMEINI established a theocratic system of government with ultimate political authority vested in a religious scholar known as the Supreme Leader, who is accountable only to the Assembly of Experts -- an elected 88-member body of clerics. US-Iran relations became strained when Iranian students seized the US Embassy in Tehran in November 1979 and held embassy personnel hostage until mid-January 1981.