Final answer:
The Shah guided Iran towards economic stability by investing in infrastructure and industry, using the country's oil revenues to modernize and industrialize the nation. His efforts were key to the economic stability during his reign despite the internal dissent and inequalities that his policies reinforced.
Step-by-step explanation:
The Shah of Iran, Mohammad Reza Shah Pahlavi, led the country toward a period of economic stability primarily through modernization and reform initiatives, and particularly by investing heavily in infrastructure and industry. After the coup against Prime Minister Mohammad Mossadeq, which was orchestrated by the CIA and MI-6, the Shah regained power and directed the nation on a path that included close ties with Western nations and favorable conditions for foreign oil interests. The Shah capitalized on Iran's substantial oil revenues, introducing reforms that included developing infrastructure and embarking on an ambitious industrialization program.
Iran's growing oil revenue, especially post-1973 oil embargo, lessened its dependency on U.S. aid. This financial capability allowed the Shah to support large-scale projects, such as building roads, factories, and schools, while also modernizing the country's military. Unfortunately, the increased wealth generated through oil also highlighted inequalities in Iranian society and led to significant internal dissent, which the Shah often suppressed with the help of his secret police, SAVAK. Nevertheless, these investments in infrastructure and industry were key factors in stabilizing Iran's economy during the Shah's reign.