As the Second World War breaks out, Iran declares neutrality. But Britain and the Soviet Union fear that Reza Shah’s ties with Germany could tip the balance of power in the Middle East.

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In the late 1930s, Europe braced for conflict as Adolf Hitler expanded German territory and power. His ambition for domination led to the Nazi-Soviet Pact of 1939, which paved the way for the invasion of Poland and ignited World War II. Germany’s blitzkrieg tactics overwhelmed Poland’s defences, and soon all major powers were at war.

Meanwhile, in Iran, Reza Shah Pahlavi’s reign was marked by complex foreign relations. Initially perceived as a British puppet, Reza Shah’s quest for Iranian sovereignty led him to challenge British and Russian influences. He ended foreign extraterritorial rights, reduced the power of tribal leaders backed by Britain, and nationalized financial institutions. Despite these moves, his close ties to the Anglo-Iranian Oil Company earned him criticism.

Iran also maintained relations with the Soviet Union after signing the 1921 Treaty of Friendship, but tensions rose as Reza Shah repressed left-wing movements and communists. He viewed these groups as threats to national stability, enacting harsh laws to silence dissent.

During the 1930s, Nazi Germany courted Iran by promoting a shared Aryan heritage and offering industrial support. Reza Shah embraced this relationship to advance his modernization agenda, welcoming German investments and military expertise. However, when Hitler invaded the Soviet Union in 1941, the Allies (fearing Nazi influence in Iran) demanded the expulsion of German agents and transit rights for Allied troops.

Reza Shah’s refusal triggered a joint British-Soviet invasion of Iran in August 1941 with the aim of removing him from power.

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