Historically, the ancient nation of Iran was known as Persia until 1935. Persia had a great imperial past and it was a major empire in its own right that was overrun frequently and had its territories altered over the centuries. Modern Iranian history started with nationalist unrest against the Shah in 1905 and the establishment of a limited constitutional monarchy in 1906. The discovery of oil in 1908 became a key factor in Iranian history and development. During the Shah regime, the United States enjoyed close and warm relations with Iran at the political and economic levels. Revolutionary Iran initiated sharp changes in the foreign policy pursued by the Shah, particularly in reversing the country's orientation towards the West and the United States. In the Middle East, Iran's only significant ally has been Syria, though Iran has made significant strides in improving relations with its neighbours.
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