preview

Iranian Oil

Decent Essays
After his election in 1951, Mohammad Mossadegh became the prime minister to the Iranian ruler, Mohammad Reza Shah Pahlavi. Prior to this time, there existed an oil company in Iran called the Anglo-Iranian oil company. Although it was Iranian oil, because the British had discovered it first, they claimed it to be theirs and took main control over the Iranian oil, the company and the clients of this company were all Europeans. After the Second World War, the British economy was very poor and indebted to its allies (mostly the USA). Iranian oil was highly beneficial to them as they relied heavily on the strong dollar income provided by the oil. The oil company was of huge benefit to the British but not so the Iranians.
However, this source of
…show more content…
At first, this was not an issue. However, the British had thought of a way from preventing this from happening. The British had seen the Korean War and how the US felt about the communism spreading throughout the world and used this as a way to manipulate the Americans into boycotting the Iranian oil trade and to ally against Iran’s Mossadegh. By making the Americans see the possibility of communism spreading in Iran like it spread in Korea, they thought that they could once again have control over Iranian petroleum. Recently, classified CIA documents on this topic were released, proving their relationship with the UK’s MI6 as well as their deep concern for loss of oil control in the country. According to these documents, officials were fearful that western countries would be “deprived of the enormous assets represented by Iranian oil production and reserves,” and feared a domino-effect whereby the Middle-East, along with “some 60% of the world's oil reserves, would fall into Communist control.” For this reason, a simple nationalisation of an Iranian oil company became entangled with the Cold War and led to drastic change of political power within the…show more content…
It all took place while the Shah was outside of the country. When he came back, Iran’s constitutional monarchy had fallen apart and the Shah possessed absolute power. It could be said that the aftermath of the 1953 Iranian coup was the undermining of authority. According to Jacob G. Hornberger, founder and president of The Future of Freedom Foundation, "The coup, in essence, paved the way for the rise to power of the Ayatollah Ruhollah Khomeini. U.S. officials, not surprisingly, considered the operation one of their greatest foreign policy successes - until, that is, the enormous convulsion that rocked Iranian society with the violent ouster of the Shah and the installation of a virulently anti-American Islamic regime in
Get Access