How did unequal distribution of oil wealth affect opposition to Mohammad Reza Shah Pahlavi?

The economic policies of Mohammad Reza Shah Pahlavi, particularly during the 1970s, were characterized by rapid growth fueled by oil revenues, yet the benefits of this wealth were not distributed evenly. While the government directed massive spending toward high-cost development programs and military expenditures, the average Iranian’s buying power and standard of living stagnated.12

This unequal distribution, coupled with high inflation and the failure of supply to meet demand, created deep-seated social discontent. The economic strain was particularly felt by the working poor and new migrants from the countryside, who found themselves disenchanted by the cultural and economic realities of modern urban Iran.21

These conditions provided a fertile environment for opposition to the Shah. As the government failed to deliver on its promises, the masses turned to the ulama for guidance. Dissident rhetoric, amplified by Ayatollah Ruhollah Khomeini, successfully linked the regime’s ill-considered economic policies and perceived corruption to its broader failures, ultimately uniting diverse groups—including secular intellectuals, nationalists, and religious leaders—in a broad movement to overthrow the Pahlavi regime.21