About 72 years ago, the Iranian parliament ratified the oil law, which caused extreme concern for the forces of the new colony.
Nationalisation of Iran’s oil industry, led by then-Prime Minister Mosadodeg and religious figures such as Ayatollah Kashani, entered a new phase (on March 20) with ESFAND 29 (falling on March 20) after Majlis passed the relevant laws.
Iran’s oil industry was nationalised due to movement within the Iranian parliament to control the oil industry, controlled by foreign interests and operated by private companies.
Mohammad Mosadegu, the future prime minister of Iran and a member of the Iranian parliament’s National Front, led the movement that led to the establishment of a Democratic government and the pursuit of Iran’s national sovereignty.
The movement attempted to cut off the hand of Britain, which had exploited Iran’s oil and had returned small parts to the country. London was unable to tolerate such a movement for many reasons, and two years later, with the cooperation of Americans, set the stage for a coup against Mosaddegh.
Western companies have been involved in the extraction of oil from other countries in Iran and the Middle East since extraction became technically and financially viable.
By the end of the 1940s, Iran had seen a greater responsiveness in Iran against the huge imbalances in oil revenues that the British and Iranian governments had previously received from the Anglo-Persian oil companies (AIOCs). Similar arrangements between the US and the country, such as Saudi Arabia, seemed more fair, and in 1950 the UK offered new concessions to Iraq on oil revenues.
This has led by Iran’s National Front leader Dr. Mohammad Mosadodegu, along with Iran’s national front leader, promoted a surge in anti-British rhetoric, in order to end Iran’s foreign influence and nationalize the oil industry.
The call was supported by the leading cleric Ayatollah Kashani, and Mossaddegu became prime minister in March 1951 after the assassination of the former prime minister. Mosaddegh then moved quickly and passed a law on March 15, 1951, immediately nationalizing the IOC, verified by the Iranian parliament two days later. He gave all British employees in the UK in a week to leave the country, and Ayatollah Kashani declared a national day of “hate against the British government.”
Sanctions continued, promoting the British to coordinate the overthrow of the Mosadegu in June 1953. Yet, the decision to stand up to Western rule and determine one’s future in such a way is considered a significant event in Iranian history and is worth remembering as a national holiday.
In the first year of nationalization, the only foreign sales of Iranian oil were 300 barrels to Italian merchant ships. Foreign oil companies were unable to prevent consumer countries from feeling Iran’s withdrawal by increasing production elsewhere. Oil production was expanded by BP and Aramco in Saudi Arabia, Kuwait and Iraq.
Oil production in the Middle East increased by approximately 10% per year in 1951, 1952 and 1953. The losses in oil exports had a significant impact on the economy, down from 242 million barrels in 1950 to 1.1.6 million barrels in 1952.
In August 1953, the Mossaddegu government was overthrown by a military coup organized by the US Central Intelligence Agency and the British Secret Intelligence Service. Mosaddegh was sentenced to three years in prison and was placed under house arrest until his death in 1967.
After the coup, Iran’s oil crisis ended, and AIOC was unable to halt production. The National Iranian oil company was established as an international consortium, and AIOC became a member.
Western greed for Iran’s oil
Western companies have been involved in oil extraction in Iran and other countries in the Middle East since extraction became technically and financially feasible.
The movement attempted to cut off the hand of Britain, which had exploited Iran’s oil and had returned small parts to the country.
Nationalizing the oil industry was a response to Iran’s next concession, including the Reuters concession in 1872, the Darcy concession, the 1933 agreement between the Iranian government and the AIOC, and the Gasgolcheyenne contract.
Since 1949, sentiment about the nationalization of Iran’s oil industry has grown. In 1949, Majlis approved the first development plan (1948-55) and called for the country’s comprehensive agriculture and industrial development. The planning organization was established to manage programs that were largely to be funded from oil revenues. However, politically conscious Iranians knew that the UK government earned more money from taxing Anglo-Iranian oil companies (AIOC-Formerly Anglo-Persian oil companies) than the Iranian government, which was derived from royalty. The issue of oil was markedly captured in the 1949 Majlis election, and New Majlis nationalists decided to renegotiate the AIOC agreement. In November 1950, the Majlis Committee on the Petroleum Issues, led by Mosaddeq, rejected the draft agreement in which the AIOC provided the government with conditions that had slightly improved.
When AIOC finally offered 50 profit sharing in February 1951, sentiment about nationalisation of the oil industry was widespread.
Mohammad Mosadodegu was the son of an Iranian civil servant who grew up as a member of the Iranian ruling elite. He received his Juris Doctorate degree from the University of Lausanne in Switzerland, and returned to Iran in 1914 and was appointed governor of the important state of Fars. He remained in the government following the rise in power of Reza Khan in 1921, serving as Minister of Finance and then briefly served as Minister of Foreign Affairs. Mosaddegh was elected to Majles in 1923. When Reza Khan was elected Shah in 1925, Mosaddegh opposed the move and was forced to retire into his personal life.
Mosaddegh rejoined the public service in 1944 after his forced abdication of Reza Shah in 1941, and was again elected Majles. An outspoken defender of nationalism, he soon played a major role in successfully opposing the grants of oil concessions in Northern Iran, as well as existing British concessions in southern Iran.
He built up considerable political strength, mainly based on his call to nationalize Iranian concessions and facilities of the British-owned Anglo-Iranian oil company.
In March 1951, Majles passed his Oil Nationalization Act, and his power became so great that Shah’s Mohammad Reza Shah Pahlavi was effectively forced to appoint his prime minister.
The 16th Majlis was made up of some members of the national front, such as Mosaddegh. Mosaddegh had been auditing AIOC documents to confirm that AIOC was paying Iran the contracted royalties and attempting to limit the company’s control over Iran’s oil reserves. The AIOC refused to cooperate with the Iranian government. In November 1950, the denial of the oil supplement contract was provided by the Petroleum Committee of Majlis, chaired by Mosaddegh. Haji Ali Razmara, then Prime Minister, opposed the measure.
On March 7, 1951, Razmara was murdered by Khalil Tamasebi, a member of Fadaian y Islam. After Razmara’s death, Majlis began the process of nationalizing Iran’s oil industry.
On March 15, 1951, the law nationalizing the oil industry was passed by Magiclis with the majority vote. On March 17, Magillis confirmed the nationalization of Iran’s oil industry, and AIOC was nationalized.
Ayatollah Kashani: An example of a clergyman acting in political development
Historical documents of the period show that Ayatollah Kashani played an important and unique role in the national struggle of the oil industry, and he has great rights to the Iranian state as he set the foundation for the freedom of God-given energy sources.
Ayatollah Kashani opposed the incompetent government and opposed the ratification of Magillis at the end of the oil contract with the colonists, particularly the oil contract with the UK. He even wrote a letter to the United Nations.
Amidst a strong protest over the British oil company’s measures, Ayatollah Kashani said along with several lawmakers to override the contract with the British consortium. However, the puppet government arrested Ayatollah Kashani and sent him to exile at the request of his master’s degree in London.
Inspired by the struggle of Ayatollah Kashani, Prime Minister Mohammad Mosadek, supported by the people, often emphasizes that Iranians should manage and misuse oil resources. Finally, Iran’s oil industry was nationalized in 1951, and the Mosaddeq government decided to enforce the law as of April 1951 despite its plot and occlusionism.
Aftermath of Oil Nationalization: US, British Conspiracy, 1953 Ilancu d’état
British oil companies retaliated against the nationalisation of their oil assets by withdrawing engineers. Oil production has fallen to near zero levels. The UK government has frozen financial assets of Iranian governments around the world and enacted an embargo on the purchase of Iranian oil.
In 1953, after considerable economic turmoil in Iran, Shah Reza Pahlavi tried to dismiss Mosadek as prime minister. There was a violent public protest, and the Shah left Iran and apparently abdicated. However, the US and British governments acted in partnership with military officer Mosadek, and were rejected and organized a coup. Street mobs were hired to demonstrate against Mossadeq, and the military took control in the name of maintaining public order. The Shah returned to Iran and controlled the government. Mossadeq was tried for treason, found guilty, sentenced to three years in prison for the rest of his life and sentenced to house arrest.
The British-American coup against the Mossadek government in August 1953 was another conspiracy hatched by the enemy of the Iranian state. After the coup, various oil giants such as British oil, Shell, Gulf Oil Corporation and Texaco entered the stage for the formation of Iranian oil and a new consortium. Once the consortium began work, the activities of the Iranian government and the Iranian National Petroleum Company were limited. Members of the consortium determine oil production rates and prices without interference as the main factors that the Iranian government had to determine the country’s revenues. This was the fate of Iranian oil until the victory of the Islamic Revolution, pulling the hand of the marauders out of the country’s resources.
Reported and edited by S. Morteza Ahmadi Alehashem