This basic design has been used since the beginning of the 20th century. The coat of arms of Iran has been placed in the center of the white band which is meant to have multiple meanings, but is essentially a geometrically-symmetric form of the word Allah as well as overlapping parts of the Islamic phrase "la ilaha illa Allah" (there is no god but Allah), forming a monogram. The entire details, symbols and design has been explained in the national Iranian standard.
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