Known as Persia until 1935, Iran became an Islamic republic in 1979 after the ruling shah was forced into exile. Conservative clerical forces subsequently crushed westernizing liberal elements. Militant Iranian students seized the US Embassy in Tehran on 4 November 1979 and held it until 20 January 1981. During 1980-88, Iran fought a bloody, indecisive war with Iraq over disputed territory. Key current issues affecting the country include the pace of accepting outside modernizing influences and reconciliation between clerical control of the regime and popular government participation and widespread demands for reform.