The Origins of the West’s Iran Crisis: Oil, Autocracy and Coup

David Painter and Gregory BrewThe Struggle for Iran: Oil, Autocracy, and the Cold War, 1951–1954

Reviewed by MARC MARTORELL JUNYENT

Munich (Special to Informed Comment; Feature) – The figure of Mohammad Mosaddeq, Prime Minister of Iran from 1951 to 1953, is an uncomfortable one for both sides of the US-Iran rivalry. For the US, Mosaddeq is a constant reminder that the dictatorial reign of Shah Mohammad Reza Pahlavi after 1953 came into being with a US intervention to overthrow the constitutionally elected Mosaddeq. The US would provide strong support for the Shah in the coming decades. Mosaddeq is someone who challenged Western powers to defend Iranian national interests. This alone should, a priori, afford him a place of honor in the Islamic Republic established by Ruhollah Khomeini after his return from exile in 1979. However, Mosaddeq’s nationalism was grounded on democratic secularist convictions that are at odds with the ideology of the Islamic Republic, which in recent years has shut down its already limited avenues of democratic participation within the system.

In their book “The Struggle for Iran: Oil, Autocracy, and the Cold War, 1951–1954”, David S. Painter and Gregory Brew revisit Mosaddeq’s nationalization of the Iranian oil industry, the ensuing tensions with the US and the UK, and the Western powers’ final decision to remove Mosaddeq. As the title of the book already suggests, the oil dispute was the obvious point of contention but the early 1950s events in Iran would not have unfolded as they did absent the weight of much larger conflicts.

Among them was the desire of many Third World nations to manage their natural resources. In the age of decolonization, newly independent countries found themselves in a paradoxical situation. For the first time, they enjoyed political sovereignty but were tied to their former metropoles by long-term contracts to exploit their natural resources. Iran was never formally colonized. Still, the original oil concession Britain obtained in 1901, with very disadvantageous terms for the Persian state, had much to do with Persia’s internal weakness at the time. This fragility had been exacerbated by imperial competition between Russia and Britain for influence over Persia.

The oil dispute in Iran in the early 1950s took place against the background of an increasingly intense Cold War between the US and the Soviet Union. In a time of strong ideological polarization, there was little place for a leader such as Mohammad Mosaddeq, who followed a policy he called “negative equilibrium” as he did not want to align Iran with either of the two blocs.

Mosaddeq became prime minister in 1951 after the Majles (the Iranian parliament) decided not to ratify the so-called Supplemental Agreement negotiated by the Iranian government and the Anglo-Iranian Oil Company (AIOC). The British company, founded in 1909, had been exploiting Iran’s oil for four decades. The Supplemental Agreement fell short of what most Iranians demanded. The Majles appointed Mosaddeq as prime minister after his proposal to nationalize the Iranian oil industry was unanimously approved by the parliament.

When nationalization was implemented, British leaders became convinced that Mosaddeq would have to go for the oil dispute to be settled in terms favorable to London. In October 1951, after Iranian troops took over the Abadan oil refinery in southern Iran, the last AIOC personnel departed the country. Mossadegh had Iran’s oil infrastructure in his hands but faced the major challenge of keeping the oil industry running without foreign technicians. Finding export markets for the oil products was even more complicated as Britain imposed an oil boycott and sanctions on Iran.

Diverging from the British position at this point, Washington “sought a solution that would restart the oil industry and preserve Iran from communist control while not endangering U.S. interests in the region”, write Painter and Brew.[1] At the same time, the Shah did not dare make a move against Mosaddeq since both his political figure and the cause of nationalization were widely popular in Iran. US officials acted as mediators between Mosaddeq on the one hand, and the AIOC and Britain on the other. There was no common ground to be found, however. Mosaddeq argued that Iranian oil belonged to the country after nationalization. Consequently, he wanted international companies to buy Iranian oil at a price higher than that offered to other developing countries where Western companies controlled the oil industry….

https://www.juancole.com/2024/04/origins-crisis-autocracy.html

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