Geographically, Iran is located in West Asia and borders the Caspian Sea, Persian Gulf, and Gulf of Oman. Its mountains have helped to shape both the political and the economic history of the country for several centuries. The mountains enclose several broad basins, on which major agricultural and urban settlements are located. Until the 20th century, when major highways and railroads were constructed through the mountains to connect the population centers, these basins tended to be relatively isolated from one another.