When Naser al-Din Shah was assassinated in 1896, Mozaffar al-Din Shah (r. 1896–1907) took over the administration of the country. Like his father, Mozaffar al-Din Shah had a mild, gentle personality, but he lacked the political and administrative knowledge needed to govern a state. His grand vizier, Amin al-Soltan (d. 1907), was openly under the influence of foreigners.

The causes of the Constitutional Revolution were mainly political and economic, and the most important of them was the weakness of the administration. Like the government of Naser al-Din Shah before it, the government of Mozaffar al-Din Shah failed to grasp the social responsibilities that come with the idea of the state and took a stance against society. This provoked a public reaction against the state, and an organized movement began between 1896 and 1906. This movement can be traced in writings about the people published during that decade, and even in official and semi-official sources. It was further accelerated by the economic crisis caused by the implementation of reform programs. Indeed, foreign loans, and the extravagant way they were spent on trips to Europe, not only deepened the existing unrest but also turned Iran politically into a quasi-colony and provoked a reaction against this within the country. Meanwhile, there were also clerics who exploited people’s faith. These men, who owned various properties and sources of income, went so far as to interfere in people’s worldly affairs. At the same time, the influence of the clerics in religious centers such as Karbala and Najaf over the population was undeniable. Poverty, unemployment, ignorance and helplessness had spread across Iran. Drought and famine, epidemics such as plague, and heavy taxes had squeezed the people. Craftsmen and peasants who had lost their livelihoods left the country in droves, mostly for Iran’s neighbors, Russia and the Ottoman Empire. A significant number of those who went to Russia worked in the mines of Baku, while those who went to Ottoman lands were mostly engaged in trade. At that time, the crown prince Mohammad Ali Mirza (r. 1907–1909), who would later ascend the throne, was in Tabriz.

Before the constitution was proclaimed, a series of events took place one after another. Ala al-Dowleh, the governor of Tehran, arrested seventeen merchants and two sayyids on charges of raising the price of sugar. This incident became a pretext for those demanding a constitution. Intellectuals who had received a modern education and were seen as representatives of Western political thought, who wanted the system of government to change and a parliament to be established, and whose ideas were rooted first and foremost in the ideology of the French Revolution, such as Mirza Malkam Khan, Mirza Abdul-Rahim Talebof and Sayyed Hasan Taqizadeh, together with scholars and enlightened clerics such as Molla Kazem Khorasani (d. 1911), Haji Mirza Hossein Tehrani and Haji Sheikh Zeyn al-Abedin Mazandarani, as well as merchants, spread across various regions of the country and joined forces with opponents of the government. These events paved the way for the Constitutional Revolution. In November 1905, the people and the scholars gathered at the Shah Abdol-Azim shrine. The movement spread to Kerman, Fars and other regions. In response, Mozaffar al-Din Shah promised to dismiss his grand vizier Ain al-Dowleh and to establish a house of justice (adalatkhaneh), which the people demanded vehemently and which did not yet exist in Iran. The movement stopped, at least for a while. But the Shah not only broke his promise, he increased the pressure on the demonstrators. At the same time, in the Ottoman Empire, Abdul Hamid II’s suspension of the constitution and return to autocratic rule left the Iranian liberals, who were closely following events there, in despair. The Shah’s failure to keep his word set the people in motion once again. This movement, led mainly by intellectuals, was further intensified by the handing over of key parts of the country to foreigners under the name of “concessions,” and by the fact that a largely uneducated population, completely unaware of what was happening in the world, was ruled by a small minority. For example, in 1872 an Englishman named Baron Julius Reuter obtained a 70-year concession giving him the right to extract all minerals except gold, silver and precious stones, to build railways and tramways, dams and canals, to found a bank, to establish all kinds of industry and to exploit forests and uncultivated land. In addition to the tobacco monopoly granted in 1890 for 50 years to the British Major Talbot and his partners, under which the state received only a quarter of the profit, in 1901 the concession for the southern oil fields was granted to William Knox D’Arcy, which later led to the founding of the Anglo-Persian Oil Company. Meanwhile, in 1901 and 1903, loans were taken from Russia and Britain on very harsh terms. These debts increased Iran’s political dependence on foreign powers and deepened the economic crisis even further.

Iran was a typical, underdeveloped Asian country living on agriculture. Slavery still existed in south-eastern regions such as Kerman and Baluchistan.

The country was an absolute monarchy. There was a shah, regarded as the “Shadow of God” (Zell-ollah), and his subjects (ra’iyyat). The people were crushed under the despotism of the Shah and the oppression of viziers, governors and officials. Those who ruled their own regions as independent emirs laid hands on people’s lives, property and honor for as long as the Shah did not remove them. If anyone in any part of the country, whether a prince or an emir, rebelled against the central government, he was immediately crushed. The Qajar dynasty kept the tribes under control by exploiting the disputes among them. While Iran was in this grave social and economic situation, the bazaars closed in June 1906. The scholars went to the religious center of Qom, and a large crowd took refuge in the British legation in Tehran. When these protests spread to Tabriz, Isfahan and Shiraz, the grand vizier Ain al-Dowleh resigned. When Nasrollah Khan Moshir al-Dowleh replaced him, the scholars and clerics who had left Tehran began to return.

Fearing the people’s fervor and sensing the danger, Mozaffar al-Din Shah reluctantly accepted, with the Constitutional Decree of 5 August 1906, the establishment of a National Assembly made up of elected representatives. The decree signed by the Shah stated that, in order to ensure the welfare and security of the entire Iranian people and to carry out the necessary reforms in government offices, a National Consultative Assembly (Majles-e Shura-ye Melli) would be formed in the capital, Tehran, with members elected from among the princes, scholars, members of the Qajar dynasty, notables, merchants and tradesmen, and the rules of this assembly were set out in the decree.

With the proclamation of the decree, the scholars who had taken refuge in Ottoman lands began to return to Iran. The first Majles was opened on 7 October 1906, with the Shah in attendance, at the Golestan Palace, which is a museum today. In the last days of his life, Mozaffar al-Din Shah signed the 51 articles of the constitution that had been prepared. When he died in January 1907, his son, the crown prince Mohammad Ali Mirza, succeeded him.

The proclamation of the constitution did not solve the people’s fundamental problems. The deputies from Azerbaijan in the Majles did not trust the new Shah, whom they knew from Tabriz. The struggle between the palace and the Majles, and therefore the nation, continued. Nevertheless, the founding of the Majles created the ground for new political thinking and change. The constitutional movement grew stronger day by day. Thanks to the new freedoms, social activities became widespread; for example, provincial and local councils were founded one after another in Tehran and the other provinces, and in the second half of 1906 their number exceeded 140. The spread of such social movements from the cities to the villages played a major role in raising the awareness of the Iranian people and consolidating the idea of social democracy. The number of newspapers was increasing. Although most members of the Majles lacked sufficient political knowledge, a number of new laws were passed. These laws were modeled on the Napoleonic Code, the Ottoman Constitution of Midhat Pasha (1822–1883), and the laws applied by France and Britain in their colonies. While this work was going on, some deputies, believing that the revolution had fulfilled its mission, began to slacken in their struggle. Taking advantage of this, Mohammad Ali Shah sought to abolish the constitution and began making preparations to achieve his goal. He called Amin al-Soltan, who had been dismissed after the proclamation of the constitution and was then living in Europe, back to Tehran and reappointed him grand vizier. The first reaction came from Tabriz: the bazaars closed and the people protested the government’s disregard for constitutional rule. Seeing that things would only get worse, Mohammad Ali Shah publicly declared that he accepted the constitution and all that it required, and calm was restored. Despite all this, the Shah and his grand vizier continued their opposition to the constitutionalists without even trying to hide it. Before long, on 31 August 1907, Amin al-Soltan was assassinated by a young Iranian. After these events, new articles were added to the constitution. Provisions on the judiciary and finance were laid down, and the foundations of constitutional government and the rights of the people were strengthened a little further.