In the 19th century, Iran lost significant territories in the
Caucasus to the
Russian Empire following the
Russo-Persian Wars. At the same time,
Britain became increasingly involved in
southern Iran, wishing to provide a counterweight to Russia's presence in the north, which posed a threat to
British India. This was solidified by the establishment of the Indo-European Telegraph Department in the 1860s; and the
Imperial Bank of Persia by an English company in 1889. By the end of the 19th century, this dominance had become so pronounced that Iran's central government in Tehran required Anglo-Russian approval for ministerial appointments.