On the cusp of the First World War, the global transition from coal to oil as the predominant energy source for technological, military, and industrial purposes markedly augmented the strategic value of oil, a prominence it retained for subsequent decades. In reaction, the British government, which possessed a 51 per cent stake in the Anglo-Persian Oil Company, sanctioned a significant expansion of the industry within its sphere of indirect influence. As petroleum demand escalated during the conflict, this enlargement necessitated the prioritisation of workforce allocation and maintenance, essential for producing petroleum in its varied forms. In response, a novel labour recruitment policy was instituted in collaboration with the British Indian Raj, extending the scope of recruitment beyond the borders of Iran through the Persian Gulf. As the war intensified, the strategic significance of Iran – highlighted by its extensive oil reserves and the proximity of its oil fields and refinery to the Mesopotamian front – transformed it from a marginal theatre of war into a pivotal military operations centre, thereby rendering it a sustained zone of conflict. This shift profoundly affected the operations and security of the Iranian oil industry and markedly influenced the working and living conditions of the labour force throughout the duration of the war.

In the twentieth century, Western oil companies worked to combat the oversupply of oil on world markets through oligopolistic management of production and competition. At the same time, they attempted to contain petro-nationalism in the oil-producing Global South. The rise of the Pahlavi regime in Iran threatened the Anglo-Persian Oil Company, until World War II led to the abdication of Reza Shah and the occupation of Iran, including its oil fields, by Allied forces. American advisors came to Iran determined to “cure” what they saw as a sick and unstable country, while US oil companies attempted to break the British monopoly on Iranian oil. The Azerbaijan Crisis and Cold War clarified US policy, producing an American commitment to safeguarding Iran’s territorial integrity by backing the young shah, Mohammed Reza Pahlavi, and ensuring the smooth flow of Iranian oil into the global market managed by the oil oligopoly.