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The Iranian Government is designed to deal with the perceived conflict between Shari'a Law which is eternal and unchanging and democratic will of the Iranian people which changes as time passes. In order to enshrine Shari'a Law as a bulwark to the democratic will, the Supreme Council of Ayatollahs was formed whose membership is made up exclusively of religious clergy. The council members remain members for life and all new members are appointed by the remaining members. This makes their opinion shielded from the masses. To reflect the Iranian people's desires, there are elections for the Majlis (Iranian Parliament) and the Presidency. However, the Supreme Council has powers that completely eclipse the Majlis and that strongly rival, if not partially eclipse, those of the President of Iran. Therefore, the Iranian government is effectively ruled by the Ayatollahs.
An oligarchy is when a small group of individuals or interests have control of the government. In Iran, power is concentrated in the Shiite Ayatollahs of the Supreme Council. Therefore, Iran fits the definition of an oligarchy.
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