ABSTRACT
The astronomical increase in oil revenues in Iran led to phenomenal economic expansion during the 1970s. The history of the oil industry in Iran is a fascinating chronicle of foreign intrigues, conspiracies, assassinations, and even a coup. Despite the consortium’s control of the Iranian oil industry, the struggle for higher oil revenues was enthusiastically pursued by the Mohammad Reza Shah. Iran’s role as policeman of the strategically important Persian Gulf and its newly acquired role as a benefactor to thirty-four nations, including England and Italy, substantially increased the Shah’s prestige in international affairs. The unexpected increase in the price of oil provided the Shah’s regime with a golden opportunity to transform Iran into a regional economic and military superpower. The militarization of Iran deepened the country’s dependence on the United States and became a rallying point for the Shahs opponents, who considered so expensive an initiative a plunder of a precious natural resource.
