[Baku]

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Actually the Shia faith is about as far as the kinship goes. Most Iranians are not Arabs but persians. The Persians are the majority population in Iran with ethnic groups such as the Azeri, Gilaki and Mazandarani, Turks, Baloch, Arabs, Kurds and the Lur.
As for your assertion that Saddam was an evil dictator, before desert storm, most of the people of Iraq liked him and often referred to him as Uncle Saddam. Iraq was quickly moving towards becoming a secular state when desert storm came. The excesses of abuse came after sanctions were laid on Iraq and the US led civil uprising. During the sanctions, CIA owned radio stations broadcast into Iraq that if Saddam would step down or was removed from power, the sanctions and miserable conditions would improve. At the same time, pressure was put on the neighbouring nations not to allow Saddam to live there making a life in exile impossible. After quashing the post desert storm rebellion Saddam could not risk giving up power because to do so would be his death sentence so he clamped down on the people harshly.

Eventhough you are correct but I gotta tell you that Persian group is the largest and second is Azeri after that the Kurds. About 30-40% of Iran total population is Azeri. And by the way dont separate Azeri and Turks because they are the same -> Azeri. Iran goverment doesnt like Azeri because if Azeri want to annex back into Azerbaycan then Iran will lose half its territory, population and power! So Iran goverment tries to confuse the people by saying Azeri and Turks.