COUP D’ÉTAT AND INDUSTRY DYNAMICS: THE CASE OF ANGLO IRANIAN OIL COMPANY 1901-1979

Neveen Abdelrehim ()

Eurasian Journal of Business and Management, 2024, vol. 12, issue 3-4, 172-185

Abstract: This paper explores the critical role of the oil industry in shaping British imperial ambitions in the Middle East during the 20th century, focusing on Iran and the Anglo-Iranian Oil Company (AIOC). Following the Great War, oil became essential to the global economy, and Britain, with limited domestic reserves, sought control over foreign oil sources, particularly in the Middle East. The 1901 D'Arcy concession granted Britain significant control over Iran’s oil, which became central to its geopolitical strategy. By 1951, Iranian Prime Minister Mohammad Mossadegh's nationalization of AIOC marked a pivotal moment, as it asserted Iran’s sovereignty and sought to reduce foreign exploitation. However, this moves directly challenged British economic interests, sparking the Iranian oil nationalization crisis. Britain responded with diplomatic and economic measures, culminating in the 1953 CIA and MI6-backed coup that overthrew Mossadegh and reinstated the Shah, maintaining Western access to Iranian oil. The paper examines how Britain’s control over Iranian oil, backed by the AIOC, became a tool for exerting influence in the region, particularly during World War II and the Cold War. The nationalization of AIOC and the subsequent coup illustrate the tension between national sovereignty and foreign corporate interests. The study highlights the long-term consequences of this intervention, which undermined Iran’s democratic movements and reinforced autocratic rule under the Shah. The 1953 coup is a key example of how economic and strategic imperatives can drive foreign intervention, leading to enduring instability and shaping the trajectory of Iran’s political and economic development in the years that followed.

Keywords: Oil Industry; Anglo Iranian Oil Company (AIOC); Coup D’etat (search for similar items in EconPapers)
Date: 2024
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