City (pop., 2006: 7,797,520), capital of Iran. It is situated on the southern slopes of the Elburz Mountains. It was originally a suburb of ancient Rhagae (Rey), which was destroyed by the Mongols in 1220 and was later the home of several Safavid rulers of Persia (16th–18th century). It became prominent after its capture (1785) by Agha Muhammad Khan, founder of the Qajar dynasty, who made it his capital. It underwent rapid modernization after 1925 and especially after World War II (1939–45). In 1943 it was the site of the Tehran Conference. In 1979, following the Islamic revolution in Iran, the U.S. embassy there was seized and its staff taken hostage by Iranian militants (seeIran hostage crisis). A transportation and industrial centre, Tehran produces more than half of Iran's manufactured goods. It is the seat of several educational institutions, including the University of Tehran (1934).