The Shah is gone, Picture of Ayatollah Ruhollah Khomeini The leader and the founder of Iran's 1979 Islamic revolution became absolute ruler of Iran after the overthrow of the Shah Mohammad Reza Pahlavi, Revolutionary demonstrators celebrate in Iran's capital city of Tehran on January 16th, the day the Shah fled the country with his family. This opened up a gap in the country for the leader of the revolution, Khomeini to return from exile and form the Islamic republic of Iran. A million people took to the streets to cheer on Khomeini and denounce the Shah. Tehran, IRAN - 16/01/1979.