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Because the Shah, Nasir Al-din, was about to allow concessions that would basically allow the total British control of the tobacco industry. The Persians used this heavily, and so they held protests in opposition. But the turning point came when Shia leader Hasan Shirazi urged the Persian people to stop smoking tobacco, thus causing any future industry to collapse from the outset. It is a matter of debate whether or not political dissident to the shah, Jamal al-din, had an impact with a thoughtful letter he wrote to Shirazi, but it seems he did influence that movement. Without any potential buyers, the deal fell apart. Its one of the earliest examples of Persians uniting en mass to fight something they found unjust.

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Q: Why was there a boycott of tobacco in Persia?
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