Operation Ajax: CIA Oil Coup in Iran - COLD WAR

Summary

This episode of 'The Cold War' delves into Iran's turbulent post-1945 political landscape, focusing on Mohammad Mossadegh's tenure and his contentious relationship with Western powers. It explores Mossadegh's push for oil nationalization, the subsequent economic crisis, and the 1953 coup orchestrated by Western intelligence agencies. The narrative underscores the impact of foreign intervention on Iran's political trajectory and the lasting resentment it fostered among Iranians.

Takeaways

• 😀 Iran's post-1945 political landscape was marked by a struggle for influence among various groups, including Western and Soviet forces.
• 👑 Mohammad Reza Shah sought to consolidate power by reducing government dependence on Parliament and increasing his own direct control.
• 🔫 An assassination attempt on the Shah in 1949 was used as a pretext to crack down on opposition, including the banning of the Tudeh Party and the expansion of the Shah's powers.
• 📊 The Seven Year Plan aimed to alleviate rural poverty and boost agricultural output but was ultimately unsuccessful due to misappropriation of funds.
• 📉 The nationalization of Iran's oil industry under Mohammad Mossadegh led to a significant drop in oil production and economic hardship.
• 🇬🇧 The British response to nationalization included economic sanctions, freezing of Iranian assets, and a refusal to accept a 50-50 profit-sharing proposal.
• 🤝 Despite initial support, the United States eventually sided with Britain against Mossadegh, contributing to a covert operation to remove him from power.
• 🗳️ Elections during this period were fraught with controversy, including allegations of fraud, interference, and the jailing of political opponents.
• 🚨 The 1953 coup, known as Operation Ajax, resulted in Mossadegh's removal and the installation of a pro-Western government, which had long-term consequences for Iran's political trajectory.
• 🌐 The events in Iran demonstrated the West's willingness to engage in covert regime change to protect its interests, setting a precedent for future Cold War interventions.

Q & A

What was the significance of the 1947 parliamentary elections in Iran?

The 1947 parliamentary elections were significant as they were one of the first tests of Iran's pluralism in the post-war period. Prime Minister Ahmad Gavam won 73 seats, while pro-Mossadegh forces won 25, and the leftist opposition only 2, which led to accusations of election rigging.

How did the assassination attempt on Mohammad Reza Shah in 1949 impact Iran's political landscape?

The assassination attempt on Mohammad Reza Shah in 1949 led to the declaration of martial law, the banning of the Tudeh Party, and the arrest of its leadership. It also provided an opportunity for the Shah to expand his powers through the passage of the Seven Year Plan and the formation of a Constituent Assembly to reexamine the Constitution.

What was the goal of the Seven Year Plan passed by the Majlis in 1949?

The goal of the Seven Year Plan was to fight rural poverty and boost agricultural output, with the belief that it would win over the poor and prevent them from succumbing to pro-Soviet influence. However, it was ultimately unsuccessful as funding was redirected to industrial bailouts and new rail lines.

What was the National Front, and what were its key objectives?

The National Front was a coalition of parties led by Mohammad Mossadegh, formed after a protest in 1949. It generally favored more democracy, civil liberties, and a functional constitutional government. Critically, it was against foreign exploitation of Iran's natural resources, specifically oil.

Why was Mohammad Mossadegh selected as Prime Minister in 1951?

Mohammad Mossadegh was selected as Prime Minister in 1951 following the assassination of Haj Ali Razmara, the Prime Minister-elect and an opponent of oil nationalization. Mossadegh was seen as a figure who could potentially resolve the nationalization issue and was popular for his stance on the matter.

What was Fadaiyan-e-Islam, and how did it influence Iranian politics during this period?

Fadaiyan-e-Islam was an Islamist organization founded in 1946 that sought to bring a more fundamentalist practice of Islam to Iran in response to growing foreign influence. It drew support from economically disadvantaged youth and was an early influence on religious terrorist organizations. Its spiritual leader, Abol-Qasim Kashani, supported the nationalization of the oil industry, leading to a temporary alliance with Mossadegh.

What was the impact of the nationalization of the Iranian oil industry on oil production?

The nationalization of the Iranian oil industry led to a significant drop in oil production. Iran's oil industry was highly reliant on British equipment and expertise, and the lack of a fleet of tankers made it difficult to transport oil to markets. The Abadan oil field was brought to a halt, and the British sanctions further exacerbated the economic impact.

How did the United States and Britain respond to Iran's nationalization of the oil industry?

The United States initially favored supporting Iran but eventually sided with Britain due to reliance on British support for the Korean conflict. Britain refused Mossadegh's proposed 50-50 profit-sharing scheme and began planning for the removal of Mossadegh and his supporters from power.

What were the consequences of the 1953 coup against Mossadegh, and how did it shape Iran's future?

The 1953 coup against Mossadegh resulted in the reversal of the nationalization of the Iranian oil industry, with the Anglo-Iranian Oil Company's monopoly being broken up and several Western oil companies entering the market. It cemented a pro-Western direction for Iran but also soured support for the West among the Iranian people. The Shah assumed governance for the next 26 years, but the failure of democracy and dictatorial rule set Iran on a path to catastrophic change.

How did the West's involvement in Iran's politics during this period set a precedent for future actions?

The West's covert regime-change in Iran demonstrated that such actions could be effective in projecting power and influence into regions. This experience likely influenced Western policy in other regions during the Cold War, as they gained more practice with covert operations.

Outlines

00:00

🔹 Iran's Post-War Politics and the Rise of Mossadegh

This paragraph discusses the political landscape of Iran following the withdrawal of Western and Soviet forces post-1945. It highlights the early Cold War tensions and the failed Soviet attempt to gain influence in Iran. The narrative then shifts to the period under Mohammad Mossadegh, detailing the volatile political environment with various groups seeking power. The 1947 parliamentary elections are mentioned, where Prime Minister Ahmad Gavam was accused of rigging, leading to protests and the formation of the National Front by Mossadegh. The Shah's efforts to consolidate power, including the Seven Year Plan and the assassination attempt that allowed him to expand his authority, are also covered. The paragraph sets the stage for Mossadegh's rise and the complex interplay of political forces in Iran.

05:01

🔹 Nationalization of Oil and the Mossadegh Era

The second paragraph delves into the formation of the National Front, a coalition advocating for democracy, civil liberties, and opposition to foreign exploitation of Iran's resources, particularly oil. It discusses the assassination of Prime Minister-elect Haj Ali Razmara and Mossadegh's subsequent rise to power. The paragraph also explains the role of Fadaiyan-e-Islam, an Islamist organization influencing the political scene. The alliance between secularist Mossadegh and religious leader Kashani over the nationalization of oil is highlighted, along with the Shah's strategic support for nationalization to gain popularity. The British refusal to accept Mossadegh's profit-sharing proposal and the economic repercussions of nationalization, including a halt in oil production and British sanctions, are also covered.

10:01

🔹 The Fall of Mossadegh and US-UK Intervention

This paragraph narrates the decline of Mossadegh's government due to economic hardships and political turmoil. It describes how the US, under President Truman, initially supported Iran but later sided with Britain, leading to covert operations to undermine Mossadegh. The paragraph details the controversy surrounding the parliamentary elections, the Shah's ambiguous stance on nationalization, and Mossadegh's increasing isolation as oil production plummeted. It also covers Mossadegh's emergency powers, his jailing of political opponents, and the referendum to dissolve the parliament, which was rigged in his favor. The paragraph concludes with the US's more direct involvement under Eisenhower, the Shah's dismissal of Mossadegh, and the subsequent popular protests and counter-coup that led to Mossadegh's arrest.

15:04

🔹 Aftermath of the Coup and Long-Term Consequences

The final paragraph discusses the outcomes of the coup that overthrew Mossadegh, including the reversal of oil nationalization and the introduction of Western oil companies into Iran. It reflects on the lasting impact of the coup, which solidified a pro-Western stance in Iran but also fostered resentment among the Iranian people. The paragraph also touches on the Shah's autocratic rule and the role of external forces in shaping Iran's political trajectory. It concludes by hinting at future discussions on these topics and encourages viewers to stay tuned for more from the Cold War Channel.

Keywords

💡Mohammad Mossadegh

Mohammad Mossadegh was the Prime Minister of Iran from 1951 until he was removed from power in 1953. He is a central figure in the video's narrative due to his role in the nationalization of the Iranian oil industry and his subsequent conflict with Western powers. Mossadegh's actions and the reactions to them by the international community, particularly Britain and the United States, are key to understanding the video's exploration of Iran's political instability during the Cold War era.

💡Nationalization

Nationalization refers to the process by which a government takes control of an industry or assets from private individuals or foreign entities. In the context of the video, the nationalization of the Iranian oil industry under Mossadegh is a pivotal event that led to a significant deterioration in Iran's relations with Western powers, especially Britain, which had significant interests in Iran's oil.

💡Anglo-Iranian Oil Company

The Anglo-Iranian Oil Company, now known as BP, was a British corporation that held a monopoly on Iran's oil industry before it was nationalized. The video discusses the company's refusal to accept Mossadegh's proposed profit-sharing scheme after nationalization, which led to a standoff and contributed to the economic crisis in Iran.

💡Cold War

The Cold War was a period of geopolitical tension between the Soviet Union and the United States and their respective allies, from the end of World War II until the early 1990s. The video uses the Cold War as a backdrop to discuss the geopolitical interests and conflicts that influenced Iran's internal politics and its relationship with Western powers, particularly the United States and Britain.

💡Fadaiyan-e-Islam

Fadaiyan-e-Islam was an Iranian Islamist group founded in 1946 that sought to establish a more fundamentalist Islamic state. The group's assassination of Prime Minister-designate Haj Ali Razmara and its temporary alliance with Mossadegh are highlighted in the video as examples of the complex and shifting alliances within Iran during this period.

💡Tudeh Party

The Tudeh Party was Iran's first major Marxist-Leninist political party, which is mentioned in the video as a significant opposition force during the period. The party's fluctuating stance on Mossadegh, from opposition to support, is indicative of the tumultuous political landscape in Iran at the time.

💡Shah of Iran

The Shah of Iran, referred to in the video as Mohammad Reza Shah, was the monarch of Iran from 1941 until the Iranian Revolution in 1979. The video discusses his attempts to consolidate power and his complex relationship with Mossadegh, which ultimately led to Mossadegh's removal from power.

💡Coup

A coup, short for coup d'état, is the sudden and often violent overthrow of an existing government. The video recounts the 1953 coup against Mossadegh, orchestrated with the involvement of Western intelligence agencies, which resulted in the reestablishment of the Shah's power and a reversal of the oil nationalization.

💡Economy-without-oil

Mossadegh's 'economy-without-oil' campaign was an attempt to diversify Iran's economy and reduce its dependence on oil revenue. The video highlights the difficulty of implementing such a strategy amidst the economic sanctions imposed by Britain and the political turmoil of the time.

💡Bast

Bast is a Persian term for a form of sit-in protest often used in Iran. The video mentions a bast held in the Royal Gardens, where protesters demanded a fair examination of election results, illustrating the use of civil disobedience as a political tool in Iran during this period.

💡Qom

Qom is a city in Iran known for its religious significance and as a center for Shia Islamic scholarship. The video references a meeting of leading clerics in Qom that resulted in a consensus of non-interference in politics, reflecting the complex interplay between religion and state in Iran.

Highlights

The Soviet Union's failure to gain influence in Iran post-1945 marked an early Cold War confrontation.

Iranian politics post-war were marked by pluralism and the rise of various groups vying for power.

The 1947 parliamentary elections were a test of Iran's pluralism, with accusations of Prime Minister Ahmad Gavam rigging the election.

Mohammad Reza Shah sought to decrease government dependence on Parliament to consolidate power.

An assassination attempt on the Shah in 1949 led to the banning of the Tudeh Party and increased the Shah's powers.

The Seven Year Plan aimed to fight rural poverty but was unsuccessful due to funding being redirected.

Mohammad Mossadegh's rise to power was marked by a call for democratic reforms and opposition to foreign exploitation of Iran's oil.

The National Front, led by Mossadegh, advocated for democracy, civil liberties, and constitutional government.

The assassination of Prime Minister-elect Haj Ali Razmara in 1951 led to Mossadegh's appointment as Prime Minister.

Fadaiyan-e-Islam, an Islamist organization, influenced early religious terrorist groups and supported oil nationalization.

Mossadegh and Kashani formed a temporary alliance to nationalize Iranian oil, despite their differing ideologies.

The Shah's support for oil nationalization was strategic, aiming to increase his own popularity and power.

The nationalization of the oil industry led to a significant drop in oil production and economic sanctions from Britain.

Mossadegh's 'economy-without-oil' campaign faced challenges due to the halt in oil production and British sanctions.

The 1952 Iranian coup, orchestrated with Western involvement, resulted in Mossadegh's removal from power.

The aftermath of the coup saw a reversal of oil nationalization and the inclusion of Western oil companies in Iran.

The coup's impact on Iran was long-lasting, leading to a pro-Western direction but also souring Iranian public opinion towards the West.

The West learned from the Iranian coup that covert regime-change could be an effective tool in projecting power and influence.

Transcripts

When we last spoke about Iran, we talked about the events surrounding the withdrawal of Western

and Soviet occupation forces in the post-1945 time period.

This was one of the early Cold War confrontations between East and West, one where the Soviet

Union failed to achieve its goal of gaining influence in Iran.

While this may have seemed like a win for the West at the time, the situation in Iran

continued to be volatile, with a multitude of different groups vying for influence and

control.

Today we are going to look at Iran under Mohammad Mossadegh and his ultimately disastrous relationship

with the West.

I’m your host David and this is...The Cold War!

So, lets get into what Iranian politics looked like.

While pluralist in nature, that pluralism was being tested in the post-war period.

The 1947 parliamentary elections were one of the first tests of that pluralism.

Opposition forces accused Prime Minister Ahmad Gavam of rigging the election after Gavam

won 73 seats compared to the 25 seats won by the pro-Mossadegh forces and the mere 2

seats won by the leftist opposition.

Sitting on the Peacock Throne was Mohammad Reza Shah, an autocrat by tendency, who wanted

to have more direct political control and felt the best way of doing this was to decrease

government dependence on Parliament.

The events of February 4, 1949 helped the Shah towards this.

While attending a ceremony in commemoration of the founding of Tehran University, a symbol

of secularism in Iran by the way, the Shah was shot at five times by Nasser Fakhrarai

(Fakh-ra-rai), a journalist affiliated to a religious newspaper who was also a member

of a union affiliated to the leftist Tudeh Party.

There was also evidence that Fakhrarai was a member of the fundamentalist group Fadaiyan-e-Islam

(fad-ai-yan e Islam).

Somehow, the first three shots fired missed the Shah while the 4th and 5th bullets wounded

him but not severely.

Fakharai was killed by security forces on the spot.

The Shah declared the assassination attempt was part of a conspiracy by communists and

religious radicals and declared martial law.

The Tudeh Party was banned, with 28 members of its leadership being arrested, including

prominent members of the United Trade Unions.

Newspapers critical of the government were also closed.

This was also used as an opportunity to further expand the powers of the Shah by means of

the passage of the Seven Year Plan through the Majlis on the 17th of February.

The goal of the plan was to fight rural poverty and boost agricultural output.

If successful, it was thought that it would win over the poor and prevent them from succumbing

to pro-Soviet influence.

The plan was ultimately unsuccessful however, as the funding for the plan was redirected

to industrial bailouts and the construction of new rail lines.

Taking advantage of his surge in sympathetic popularity immediately after the assasignation

attempt, the Shah had a bill passed through the Majlis calling for a Constituent Assembly

to be formed to reexamine the Constitution of 1906.

As this Constituent Assembly was dominated by allies of the Shah, he was able to enact

several laws to his own great benefit.

Lèse-Majesté was introduced, making it illegal to criticise the Shah or the Royal Family.

Ownership of crown land was changed so that the land was held directly by the Shah.

Reza Mohammad Shah also succeeded in dividing Parliament into two separate chambers.

The 60-man Senate became the upper house, with half of its seats filled by men appointed

by the Shah.

The Shah also gained the right to dissolve both chambers of Parliament.

So, with these changes now in place, elections were arranged for July of 1949 to elect the

16th Majlis.

The elections were held but the claims of fraud and falsification were rampant and calls

for public protests grew.

Mohammad Mosaddegh, listening to the demands of the people, called for a protest to be

held on October 13, when thousands marched on the Royal Palace to request a bast.

For those of you who may not know, a bast is a type of sit-in protest often used in

revolutionary situations in Iran.

It is characterized by being held in a mutually agreeable location where the protesters can

make their demands free from persecution.

20 representatives were selected to start bast in the Royal Gardens where they called

on the Shah to prevent the court Minister, Abdolhossein Hazhir, from falsifying the election

results.

Hazhir meet with the protesters himself, promising the results would be examined for fairness

and in the event they were found to be unfair, they would be dismissed, with new elections

held.

Sounds like a total win for the protesters, right?

That's what they themselves thought as the group went on to form the National Front,

a coalition of parties led by Mohammad Mossadegh.

The groups represented within the National Coalition were generally in favour of more

democracy, more civil liberties, and a functional constitutional government.

Critically, especially for this story, they were also against foreign exploitation of

Iran's natural resources, specifically oil.

I’m sure you can guess the direction this is all heading...

Hazhir himself was not able to examine the election results as he was assassinated in

November by Fadaiyan-e-Islam but the Shah himself decided that new elections would be

held in February of 1950.

While the National Front Coalition only won between 7 and 11 seats, depending if you want

to qualify certain groups as part of the coalition or just allies, their message about the nationalization

of the oil industry was gaining a lot of traction.

When Haj Ali Razmara, the Prime Minister-elect and an opponent of oil nationalization, was

assassinated by a member of Fadaiyan-e-Islam in March of 1951, a new Prime Minister was

needed.

Mohammad Mossadegh was selected.

Now we need to explain Fadaiyan-e-Islam.

An Islamist oragnization founded in 1946, it looked to bring a more fundamentalist practice

of Islam to Iran, in the face of growing foreign influence.

Drawing support from the economically disadvantaged youth of Iran, it is recognized as an early

influence on the religious terrorist organizations that would come.

But more on that later!

The spiritual leader of Fadaiyan-e-Islam was Abol-Qasim Kashani, who was appointed as the

speaker of the new parliament.

Critical to our current story, he was an ardent supporter of the nationalization of the oil

industry.

The mutual desire between Kashani and Mossadegh to nationalize Iranian oil created an interesting,

albeit temporary alliance between the religious leader and and strident secularist.

MOssadegh hoped the Kashani would help mobilize the religious forces in the country to back

the nationalization program while Kashani hoped that Mossadegh would help to establish

Sharia law in Iran.

Clearly, this was an alliance of convenience and as you can well imagine, really didn’t

last long!

Interestingly, the Shah also understood and tried to take advantage of the religious factions

present in the country and called on Ayatollah Seyyed Hossein Borujerdi (Bor-u-jer-di) to

convene his supporters and convince them of the need for religious quietism, the disinvolvement

of religion in politics.

In exchange, the Shah promised to remain uninvolved in religious matters.

A meeting of leading clerics in the city of Qom on February 20, 1949 resulted in a consensus

of non-interference.

Keep in mind of course that there were still some clerics who favoured religious involvement

in political life, notably the future Ayatollah Khomeini.

We’ll have LOTS more about him later in our series!

Ok, so Mossadegh, a firm believer in democracy and parliamentary power, is now the Prime

Minister.

As such, he viewed the Shah as symbolic figure.

The Shah on the other hand didn’t agree with this and wanted real power of his own.

Understanding the widespread popularity surrounding the idea of nationalization of the oil industry,

the Shah threw his support behind this.

While he knew this would likely increase support for Mossadegh, he also knew he would gain

support of his own.

On May 1, 1951 the oil industry in Iran was nationalized.

Mossadegh, not wanting to completely alienate Britain, offered a 50-50 profit sharing scheme

between Iran and the Anglo-Iranian Oil Company.

A similar deal had recently been achieved in Venezuela and Mossadegh hoped for something

similar.

Despite the United States urging London to accept the proposal, the British refused and

instead started making plans for the removal of MOssadegh and his supporters from power.

But before we get to those plans, what was the impact of nationalization on oil production

itself?

To be straight-forward, it was terrible.

The Iranian oil industry had been highly reliant on equipment and expertise that had been supplied

by Britain.

Iran also lacked its own fleet of tankers so what oil was being extracted had no easy

way of getting to markets.

Oil production in the Abadan oil field was actually brought to a halt.

Compounding the economic impact was a sanction regime imposed by the British which included

a ban on key imports like sugar and steel, the freezing of Iranian bank accounts and

orders to the Royal Navy to stop any ships transporting Iranian oil.

Bipartisan support in the British Parliament, led by the recently reelected Winston Churchill,

favoured harsh treatment of Iran.

Mossadegh as a result, turned to the US looking for support, and although President Truman

initially favoured supporting the Iranians, he did end up favouring the British position,

as the United States was reliant on British support for the ongoing conflict in Korea.

One thing, by the way, and I’ll be very clear here, when we say the US ended up supporting

the British position in Iran, that means the United States began to help undermining the

Iranian government.

Back in Iran, with living conditions worsening as the economic situation spiraled, fresh

parliamentary elections were held.

Despite Mossadegh’s democratic credentials, these elections were also marred by controversy.

On one side, were the claims of British interference including widespread bribery of candidates

and regional leaders in an effort to create a pro-western bloc in Parliament.

On the other side, Mossadegh himself was accused of interference when he decided to halt the

multi-day election process as soon as he had reached a quorum of seats, a mere 79 out of

the total 136 seats available.

The National Front took 30 seats while Royalists and pro-British groups took 49.

Tudeh, the Soviet-backed leftists you will remember, failed to win a single seat despite

having the second largest number of overall votes.

The position of the Royalists regarding nationalization was...ambiguous.

Although the Shah publicly supported nationalization, he was very much hoping that the crisis would

result in Mossadegh being removed from office, allowing the Shah to assert greater influence.

Mossadegh’s position was becoming more...complicated, as time went on.

Oil production had dropped almost 10-fold and his efforts to launch an “economy-without-oil”

campaign, aimed to decrease dependency on oil was extremely hard to implement in the

middle of the crisis.

Mossadegh’s support from the Islamists was also beginning to crumble as Kashani’s hopes

of the introduction of Sharia law went unrealized.

Mossadegh increasingly became the focus of blame for the both the economic and political

crisis.

Violence in the form of street clashes became rampant and by August of 1952, Mossadegh made

the decision to rule via emergency powers.

After a failed assasination attempt on himself and one of his cabinet members, he ordered

the jailing of dozens of his political opponents.

As you may well imagine, this created further anger in the populous and accusations of Mossadegh

establishing himself as a dictator.

After the resignation of many Mossadegh supporters in Parliament, he decided to hold a referendum

on dissolving the Mejlis and ruling by executive decree.

The widespread rigging of the referendum resulted in a 99.9 percent approval rating for this

plan which you can be sure was well received...To add further fuel to this political mess, Tudeh

switched is opposition to Mossadegh and began to support him, launching violent attacks

on anti-government opponents.

Mossadegh protested this but Tudeh continued, further undermining Mossadegh’s position.

So that is the mess inside of Iran, but we all know these things don’t ever happen

in a vacuum, especially when oil is involved.

The election of Dwight D. Eisenhower in 1952 saw the American’s taking a more...involved...approach

in Iran and pursued the removal of Mossadegh from office.

Although the Shah initially refused to take part in the coup, he eventually changed his

mind and dismissed Mossadegh from office, replacing him with General Fazlollah (Faz-lo-llah)

Zahedi (zah-he-DI).

Mossadegh refused the dismissal and millions of his supporters, as well as those from Tudeh

took to the streets in protest.

Fearing the outcome, the Shah and his family fled the country while many of the coup’s

plotters and supporters were jailed.

Mossadegh, believing the plot to have failed, called his supporters home.

The plotters on the other hand, had other ideas.

Zahedi met with the wealthy pro-Shah Ayatollah Behbahani (Beh-ba-Han-i) and other royalists.

They arranged for a confrontation to be staged in Tehran, which took place on August 19,

1952.

Paid infiltrators, claiming to be members of Tudeh, started a protest calling for a

communist revolution.

Genuine members of Tudeh soon joined in the protest and before too long, widespread destruction

of shops and businesses was underway.

At the same time this was happening, Zahedi and the plotters had a second group of paid

infiltrators posing as supporters of the Shah, gathering and calling for large scale opposition

to the communist revolution.

As you can expect, violence between the groups ensued.

This allowed General Zahedi to call in the army to restore order.

The army forces, with support from the anti-Tudeh groups, quickly took control of government

buildings and Mossadegh, fearing more bloodshed, refused to escalate the situation any further.

Mossadegh was arrested upon the return of the Shah, who it should be noted, was accompanied

by CIA director John Foster Dulles.

Pure coincidence, I'm sure!

The coup completed, the nationalization of the Iranian oil industry was reversed, but

with the Anglo-Iranian Oil Company monopoly being broken up.

Five American oil companies were allowed into the market as well as the Dutch company Royal

Dutch Shell and the French French Oil Company.

The Western-backed coup in Iran cemented a pro-Western direction for the country for

the foreseeable future.

However, it also soured support for the West greatly amongst the Iranian people.

In the wake of the coup, the Shah assumed single-handed governance of Iran for the next

26 years, but the failure of democracy in the country combined with dictatorial rule

and the meddling of both capitalist and socialist forces in Iranian affairs set the country

on the path to catastrophic change.

The West, for it’s part, found that covert regime-change could be an effective option

in projecting its power and influence into regions, something that they would gain a

great deal more practice with as the Cold War progressed.

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