How did oil revenues change Tehran during the 1970s?

During the 1970s, rising oil revenues—particularly following the 1973 oil boom—drove a period of rapid modernization and prosperity in Tehran, while simultaneously fueling significant social and economic instability.1

The influx of oil wealth facilitated extensive urban development, including the construction of new highways, high-rise buildings, and large satellite towns, which helped the city's population grow to more than four million by the late 1970s. This era of industrialization and heavy government spending, however, was accompanied by high rates of inflation as supply failed to keep pace with demand.12

Despite the apparent economic success, the period was marked by intensifying social divides and political suppression. The government's reliance on oil assets and its high-cost development programs masked deep-seated economic problems, leading to stagnant buying power and a declining standard of living for many residents. This environment of economic frustration, combined with the shah’s lack of political openness and the cultural alienation of new rural immigrants, ultimately fueled the social unrest that culminated in the Iranian Revolution (1978–79).123