The Safavid dynasty  was one of the most significant ruling dynasties of Iran, often considered the beginning of modern Iranian history.  The Safavid shahs ruled over one of the Gunpowder Empires.  They ruled one of the greatest Iranian empires after the 7th-century Muslim conquest of Iran, and established the Twelver school of Shia Islam as the official religion of the empire,  marking one of the most important turning points in Muslim history.

The Safavid dynasty had its origin in the Safavid order of Sufism, which was established in the city of Ardabil in the Azerbaijan region. It was an Iranian dynasty of Kurdish ancestry but during their rule they intermarried with Turkoman, Georgian,Circassian, and Pontic Greek dignitaries. From their base in Ardabil, the Safavids established control over parts of Greater Iran and reasserted the Iranian identity of the region, thus becoming the first native dynasty since the Sasanian Empire to establish a national state officially known as Iran.

The Safavids ruled from 1501 to 1722 (experiencing a brief restoration from 1729 to 1736) and, at their height, they controlled all of what is now Iran, Azerbaijan Republic, Bahrain, Armenia, eastern Georgia, parts of the North Caucasus, Iraq, Kuwait, and Afghanistan, as well as parts of Turkey, Syria, Pakistan, Turkmenistan and Uzbekistan.

Despite their demise in 1736, the legacy that they left behind was the revival of Iran as an economic stronghold between East and West, the establishment of an efficient state and bureaucracy based upon “checks and balances”, their architectural innovations and their patronage for fine arts. The Safavids have also left their mark down to the present era by spreading Twelver Islam in Iran, as well as major parts of the Caucasus, Anatolia, and Mesopotamia.

The one valuable item, sought for in Europe, which Iran possessed and which could bring in silver in sufficient quantities was silk, which was produced in the northern provinces, along the Caspian coastline. The trade of this product was done by Turks and Persians to begin with, but during the 17th century the Christian Armenians became increasingly vital in the trade of this merchandise, as middlemen.

Whereas domestic trade was largely in the hands of Persian and Jewish merchants, by the late 17th century, almost all foreign trade was controlled by the Armenians.  They were even hired by wealthy Persian merchants to travel to Europe when they wanted to create commercial bases there, and the Armenians eventually established themselves in cities like Bursa, Aleppo, Venice, Livorno, Marseilles and Amsterdam.  Realizing this, Shah Abbas resettled large numbers of Armenians from the Caucasus to his capital city and provided them with loans.  And as the shah realized the importance of doing trade with the Europeans, he assured that the Safavid society was one with religious tolerance. The Christian Armenians thus became a commercial elite in the Safavid society and managed to survive in the tough atmosphere of business being fought over by the British, Dutch, French, Indians and Persians, by always having large capital readily available and by managing to strike harder bargains ensuring cheaper prices than what, for instance, their British rivals ever were able to.