What Country is Ruled by Theocracy?

The only uncontroversial answer to that is the Vatican City, but some may not regard it as a "Country"

Iran is a theocracy, as is Saudi Arabia. While both have titular heads of state nothing is done without consent and approval of the religious leaders. Until the Taliban was removed from office, Afghanistan too was a theocracy.

-fundamentals!

The UK is also technically a theocracy as Anglicanism is the official religion of the government and the head of the church is the current monarch who is also the head of state technically