Before the west installed the tyrant Shah, Iran did have a democratically elected prime minister. During his reign he did maintain economic and trading ties with Israel. Granted its hard to know whether or not that would have lasted as his reign as PM did not last long before the west had him over thrown in favor of a pro-western tyrant.
U.S., allies conduct 20 air strikes in Syria and Iraq against ISIS, says U.S. military (Reuters)
from the article: Israeli row with Iran triggers memories of one-time ally