Anglo-Iranian Oil Crisis (19511953)

The Anglo-Iranian oil crisis began on 26 April 1951 when Iran's new nationalist leader, Mohammed Mossadegh, moved to
nationalize his nation's oil reserves. The crisis ended on 19 August 1953 when Mossadegh's government was overthrown in
a U.S.-sponsored coup d'tat. Mossadegh's nationalization measures came largely at the expense of the British-controlled
Anglo-Iranian Oil Company, which had been exploiting Iranian oil reserves for years. The crisis highlighted the differing
communist containment policies carried out by the British Foreign Office and the U.S. State Department in the Middle East.
It can also be viewed as an early attempt by a developing nation to break free from Western imperialism and colonial
control. The fact that the crisis involved oil also showcases just how critical cheap and abundant oil supplies were to the
West.

During 19511953 there was an ongoing diplomatic crisis among Iran, Great Britain, and the United States over
Mossadegh's actions. Beginning in November 1951, Mossadegh requested that Western nations that had purchased Iranian
oil in the past confirm their current orders with the newly nationalized Iranian oil industry. The British took immediate
action by pressuring purchasing nations not to cooperate with Mossadegh's request.

At first, the United States took a rather neutral stance in the crisis, siding completely with neither London nor Tehran. The
Americans' chief concern was keeping Iranian oil out of Soviet control rather than saving the Anglo-Iranian Oil Company.
U.S. Secretary of State Dean Acheson urged Britain to accept Iran's nationalization and instead aim at maintaining control
over the technical aspects of oil production. Throughout much of 1951, the United States regarded Iran's continued alliance
with the West as a priority over British economic interests.

President Harry S. Truman sought to broker a settlement between Tehran and London based on the acceptance of Iranian
nationalization in return for British control over oil production and drilling. At the same time, British officials were divided
over whether launching a war against Iran was a viable option to ending the standoff. The British Foreign Office seemed
willing to entertain the idea of military force, while British Prime Minister Clement Attlee steadfastly opposed it.

Nevertheless, the British government refused to negotiate with the Iranians and instead opted to impose economic
sanctions on Mossadegh's regime. On 10 September 1951, Britain took measures to prevent purchases of Iranian oil on
the international market.

Meanwhile, the United States and Britain were moving closer together on ending the crisis. Throughout the autumn of
1951, the Truman administration became less neutral. As time went on, the U.S. State Department trusted Mossadegh less
and less. From January 1952 on, the United States became increasingly concerned about Iran's internal economic stability.
America maintained that Mossadegh was now increasingly likely to turn to Moscow to stabilize Iran's economy. By the
spring of 1952, these concerns led the Americans to view regime change as a viable path to ending the crisis. Between the
end of 1951 and July 1952, the Americans hoped that this would happen as a result of the dispute between Shah

Mohammad Reza Pahlavi of Iran and Mossadegh over which of the two would control the Persian Army. In the fall of 1952
Tehran broke diplomatic relations with London.

In January 1953 Dwight D. Eisenhower became president of the United States. The failure of diplomacy coupled with the
Eisenhower administration's eagerness to end the crisis opened the door for the coup d'tat of August 1953. The
Eisenhower administration supported regime change in Iran in a coup organized by the Central Intelligence Agency (CIA).
U.S. policymakers were particularly alarmed at the possibility that Mossadegh would bring the communists to power in
Iran. Supported by the British government as well and carried out on 19 August of that year, the coup returned Shah
Pahlavi to power. The British and American governments then established an Anglo-American oil consortium on 12 April
1954.