During the age of imperialism, very few nations avoided colonisation by a major European power without possessing significant regional strength. In the Middle East, Persia was the sole exception. It maintained its sovereignty throughout the 19th and 20th centuries.
This is especially miraculous, considering Persia faced enormous internal challenges. The country dealt with regional instability caused by autonomous tribes like the Qashqai, Bakhtiari, and Turkmen, an agrarian economy which suffered from limited industrialisation and the decline of the Silk Road due to European maritime dominance. Its military was also severely underfunded.
Yet, despite these internal problems, Persia remained independent—an anomaly in an era defined by aggressive imperial expansion.
Fig. 1. Map of Persia in 1900 (including the red stripes)
Beyond internal instability, Persia faced the threat of three major European powers on its borders: the Ottoman Empire to the west, the Russian Empire to the north, and the British Empire to the southeast. Historically, the Ottomans were Persia’s main rival. Over the past three centuries, both empires clashed over key territories like Iraq and Azerbaijan. However, by the 19th century, the Ottoman Empire was a shadow of its former self. It was burdened by internal revolts and European encroachment. The Serbian Revolution (1804–1817) and the Greek War of Independence (1821–1830) saw Balkan territories break away and the independence of Romania, Serbia, and Montenegro occurred.
Financially, the Ottomans collapsed. The 1875 debt crisis that placed them under European economic control further weakened its ability to project power. Militarily and economically fragile, they could no longer threaten Persia during the period of the 19th and early 20th centuries.
By the early 19th century, Russia had established itself as a formidable threat to Persia. It had expanded southward into the Caucasus and Kazakhstan, a catalyst for two major conflicts, the Russo-Persian Wars of 1804–1813 and 1826–1828.
Both wars resulted in significant Persian territorial losses. The Treaty of Gulistan (1813) forced Persia to cede Dagestan and most of the Caucasus to the Russians, including the industrialised cities of Baku and Derbent. The Treaty of Turkmenchay (1828) stripped Persia of Nakhichevan and the remainder of Armenia ending its centuries-long influence in the Caucasus.
These treaties additionally came with harsh terms. The latter treaty imposed a staggering indemnity of 20 million silver rubles which bankrupted the Qajar treasury. Therefore granting Russian merchants exclusive trading privileges, including dramatically reduced tariffs. This further damaged Persia’s domestic economy by flooding its markets with Russian goods. Furthermore, Russia gained extraterritorial rights, exempting its citizens from Persian law, and barred Persia from stationing warships in the Caspian. Russian naval dominance became ensured.
The combined effect of these terms, while stopping short of colonisation, reduced Persia to a semi-dependent state under Russian economic and political influence.
Fig. 2. Map of Losses to the Russian Empire during the period of 1804-1828
By the mid-19th century, Britain became deeply involved in Persia’s political and economic affairs. The British had consolidated power in India and feared Russian expansion. An Anglo-Russian rivalry, known as the Great Game.
The British East India Company’s conquest of Sindh (1843) and Punjab (1849) brought British influence directly to Persia’s eastern frontier, increasing the country’s importance as a buffer state between the two empires. British anxieties over Russian-Persian influence in Afghanistan culminated in the First Anglo-Afghan War (1839–1842). Although it was a disastrous military intervention, it reinforced Britain’s determination to curtail Persian ambitions.
This policy became evident in the Anglo-Persian War (1856–1857), when Britain swiftly retaliated against Persia’s attempt to reclaim Herat. A successful naval blockade and inland campaign forced Persia to sign the Treaty of Paris (1857), renouncing claims to Herat and recognising Afghanistan as a British-aligned state.
Fig. 3. Map of lands lost to both Russia and Britain by Persia in the 19th Century
Beyond military pressure, Britain expanded its economic and infrastructural presence in Persia. The Anglo-Persian Telegraph Agreement (1863) linked India to Europe via Persia, allowing Britain to monitor Russian activities more effectively.
British economic control was strengthened with the Reuter Concession (1872) which granted British businessman Baron Julius de Reuter significant control over Persian infrastructural projects. Although it was later revoked due to Russian and domestic opposition, it highlighted Britain’s growing involvement.
Following the important Persian discovery of oil, the 1901 D’Arcy Concession granted British investors a 60-year monopoly on Persian oil exploration, culminating in the formation of the Anglo-Persian Oil Company—modern-day BP—in 1908.
This oil became vital to Britain’s global strategy, as the British Royal Navy transitioned from coal to oil-powered ships, further entrenching British economic and strategic influence. Investments in non-oil sectors, such as railways and telecommunications, further tied Persia to Britain’s imperial network, ensuring that while Persia remained politically independent, its economy was increasingly shaped by British interests.
Fig. 4. Abadan Refinery built by the APOC in the 1910s
Fig. 5. William Knox D’Arcy
By the mid-19th century, Persia had come to terms with its military inferiority after suffering defeats to both Russia and Britain. Thus, there were efforts to modernise the Persian military, including the establishment of the Dār al-Fonūn Military and Technical Academy in 1851 to train officers. However, British and Russian opposition prevented significant military growth, and internal resistance from conservative Qajar elites further limited reforms. Recognising that direct military confrontation was futile in maintaining their independence, Persia turned to diplomacy, skilfully playing Britain and Russia against each other in order to maintain its sovereignty.
This strategy was evident during the Napoleonic Wars (1803–1815), when Persia initially allied with France through the Treaty of Finkenstein (1807), hoping to use French support against Russia. However, when Napoleon shifted his alliance to Russia in the Treaty of Tilsit (1807), Persia pivoted towards Britain.
Similarly, during the Greek War of Independence (1821–1830), Persia benefited indirectly as Britain focused on supporting the Ottoman Empire against Russia, preventing further Russian advances into Persian territory. The Crimean War (1853–1856) provided another opportunity: with Britain and France engaged against Russia, Persia sought to reassert control over Herat in 1856, though this ultimately led to war with Britain. It also led to the Treaty of Paris (1857), which forced Persia to withdraw from Afghanistan. This pattern of leveraging Anglo-Russian tensions continued into the late 19th century too.
In 1907, the Anglo-Russian Convention was signed between the British and Russian Empires, expanding their spheres of influence in Persia, Afghanistan, and Tibet. In Persia, the Convention divided the nation into three distinct zones. The northern region, encompassing cities like Tabriz and Mashhad, fell under Russian influence. The southeastern area, including Sistan and Baluchistan, was designated for British influence. A neutral zone was created in the centre, covering parts of Isfahan and Yazd, where both powers agreed not to interfere.
Fig. 6. Separation of Persia into three regions during the Anglo-Russian Convention of 1907
Despite the erosion of Persian self-governance, the Convention inadvertently served as a protective mechanism against full-scale colonisation. The mutual distrust between Britain and Russia ensured that neither power could unilaterally dominate Persia without provoking the other. Furthermore, both empires recognised the strategic importance of Persia as a buffer state, preventing direct confrontation between their respective colonial holdings.
Both World Wars further threatened Persia’s sovereignty. In 1914, the Ottoman Empire invaded northwestern Persia, using it as a base for operations against Russia in the Caucasus. In response, Russian forces occupied Persian Azerbaijan, clashing with Ottoman-backed Kurdish and Azerbaijani militias. Meanwhile, the British, seeking to protect Anglo-Persian Oil Company interests (established in 1908), stationed troops in the south. Persia’s fragmented political landscape and weak military left it unable to resist.
The 1917 Russian Revolution shifted the balance forcing Bolshevik forces to withdraw. Britain sought to exploit this power vacuum through the 1919 Anglo-Persian Agreement, which aimed to establish Persia as a British protectorate. However, fierce nationalist opposition, led by Hassan Modarres and Mohammad Mossadegh, along with Soviet, French, and American pressure led to the agreement’s rejection in 1921.
World War II again left Persia vulnerable to foreign powers. By 1941, Reza Shah’s modernisation efforts had strengthened central authority, but he refused to expel German engineers. Britain and the USSR had become severely alarmed by this. Keen to deter any future Persian oil being directed towards Germany and to create an alternate supply route for the Eastern front, they invaded the country on the 25th August of that year. Persia, militarily outmatched, surrendered within six days (August 31st, 1941), preventing prolonged resistance that might have led to full partition, as seen in Poland in 1939.
Instead, the Allies forced Reza Shah to abdicate in favour of his son, Mohammad Reza Pahlavi, ensuring Persia remained under indirect control rather than outright occupation. The 1942 Tripartite Treaty of Alliance formalised Iran’s role in the Allied war effort while guaranteeing its territorial integrity. Despite Stalin’s desire to continue occupying Persia after the war, U.S. diplomatic pressure ensured Iran remained independent from Soviet control as both sides wanted to avoid potential future civil wars in the region.
Fig. 7. Map of Soviet and British occupation of Iran during World War Two
In conclusion, Persia managed to evade colonisation through a realisation that many nations of the time failed to understand: it could not effectively resist an invasion by a major power. As a result, Persia sought to balance the influences of both Russia and Britain in the region, willingly conceding key assets such as its oil rights or industries to foreign powers to avoid a full-scale invasion.
NB: Persia became known as Iran after 1935. As a result, Persia is referred to as Iran in the latter part of the essay.
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