4 - The Collapse Narrative

Summary

In August 1953, the United States and Great Britain overthrew the government of Mohammed Mosaddeq with assistance from Iranian elements and the shah. The coup was motivated by American concerns that an Iranian “collapse” was imminent, one that would pave the way for a takeover by Iranian communists and threaten Western control of Middle Eastern oil reserves. Mosaddeq’s attempts to construct an “oil-less” economy, with some assistance from American developmentalists working in the Point Four program, may have succeeded in disentangling Iran from dependence on oil revenues. The coup squashed this experiment, and in 1954 the United States engineered a new oil agreement between the shah’s government and a consortium of oil companies, reintegrating Iranian oil into the global market and tying Iran’s economic future to the production of petroleum.