Persia's Qajar dynasty had found itself in a precarious situation due to an increasing foreign presence within Iran beginning in the nineteenth century.

Reeling from devastating losses against the Russian Empire in 1813 and 1828 as well as the British Empire in 1857, not only had the Qajar government been forced to grant countless concessions to these foreign powers, but Iranian bazaaris (merchants) have been left in a highly vulnerable position as they cannot compete with the numerous economic advantages gained by merchants from Europe.

According to the accounts of foreigners living in Iran at the time, the Qajar dynasty is highly unpopular among the populace and is perceived as having little concern for the welfare of its residents.

Later accounts by British eyewitnesses will suggest that the reason why the dynasty had not been overthrown sooner in the face of widespread discontent was due to British and Russian intervention that essentially propped up the shah.

In 1872, Nasir al-Din Shah had negotiated a concession with Baron Julius de Reuter, a British citizen, granting him control over Persian roads, telegraphs, mills, factories, extraction of resources, and other public works in exchange for a stipulated sum for five years and sixty percent of all the net revenue for twenty years.

The Reuter concession had been met with not only domestic outrage in the form of local protests, but also opposition from the Russian government.

Under immense pressure, Nasir al-Din Shah consequently canceled the agreement despite his deteriorating financial situation.

While the concession had lasted for approximately a year, the debacle has set the foundation for the revolts against the tobacco concession in 1891 as it had demonstrated that any attempt by a foreign power to infringe upon Iranian sovereignty will infuriate the local population as well as rival European powers.