After World War 1, the national sentiments and the hostile feelings of the Persian people toward the Europeans obliged the foreign firms to close their factories. They continued their trade with the Persian merchants, however, In the last ninety-five years, the industry and the trade in Persian rugs developed and improved. This progress was not always steady.

During these years the production and the trade in Persian rugs had several ups and downs, mainly due to the political and economic upheaval of the early half decade.

When the Second World War started in 1939, the industry began to recede gradually; nevertheless this had little influence on the exportation of rugs to the United States. At the end of the War, when the raw materials could be found in abundance, the rug industry regained its former glory.

The production and exportation of rugs from Persia has always been subject to the fluctuation of the price of rugs in the world and the political and economic situation.