The 2003 Bam earthquake struck the Kerman province of southeastern Iran at 01:56 UTC (5:26 am Iran Standard Time) on December 26. The shock had a moment magnitude of 6.6 and a maximum Mercalli intensity of IX (Violent). The earthquake was particularly destructive in Bam, with the death toll amounting to at least 34,000 people and injuring up to 200,000. The effects of the earthquake were exacerbated by the use of mud brick as the standard construction medium; many of the area's structures did not comply with earthquake regulations set in 1989.

Following the earthquake the U.S. offered direct humanitarian assistance to Iran and in return the state promised to comply with an agreement with the International Atomic Energy Agency which supports greater monitoring of its nuclear interests. In total a reported 44 countries sent in personnel to assist in relief operations and 60 countries offered assistance.

Following the earthquake, the Iranian government seriously considered moving the capital of Tehran in fear of an earthquake occurring there. The earthquake had a psychological impact on many of the victims for years afterwards. A new institutional framework in Iran was established to address problems of urban planning and to reconstruct the city of Bam in compliance with strict seismic regulations. This process marked a turning point, as government ministers and international organizations collaborated under this framework with local engineers and local people to organize the systematic rebuilding of the city.