How Iran's Troubled History with the U.S. Impacts Global Oil Prices

The CIA's role in overthrowing Iran's democratically elected leader in 1953 sowed the seeds for decades of anti-American sentiment.

Mar. 22, 2026 at 6:08pm

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This article traces how the CIA's involvement in the 1953 overthrow of Iran's democratically elected Prime Minister Mohammad Mossadegh, at the request of the British government, led to decades of anti-American sentiment in Iran. This history of Western intervention and the subsequent 1979 Iranian revolution, which saw the U.S. embassy in Tehran seized, has had lasting geopolitical and economic ramifications, including the current spike in global oil prices.

Why it matters

The tumultuous history between Iran and the United States, rooted in the CIA-orchestrated coup in 1953, continues to shape global politics and economics. Iran's view of the U.S. as the 'Great Satan' has fueled ongoing tensions, and any potential military conflict between the two countries would have severe consequences for oil supply and prices worldwide.

The details

In 1951, Iran's first democratically elected Prime Minister, Mohammad Mossadegh, nationalized the country's British-owned oil production facilities. Angered by this move, the British government requested U.S. assistance in overthrowing Mossadegh. While President Truman declined, his successor Eisenhower authorized the CIA to orchestrate Mossadegh's removal in 1953. This paved the way for the return of the tyrannical but pro-Western Shah, Mohammad Reza Pahlavi. The Shah's increasingly brutal regime jailed and tortured dissidents, leading to a popular rebellion in 1979 that overthrew the monarchy and established the current Islamic Republic of Iran. The new regime's hostility toward the U.S., including the 444-day hostage crisis at the American embassy, has defined Iran-U.S. relations ever since.

  • In 1951, Prime Minister Mohammad Mossadegh nationalized Iran's British-owned oil production facilities.
  • In 1953, the CIA, at the request of the British government, orchestrated the overthrow of Mossadegh.
  • In 1979, the Iranian revolution overthrew the pro-Western Shah and established the current Islamic Republic of Iran.

The players

Mohammad Mossadegh

Iran's first democratically elected Prime Minister who nationalized the country's British-owned oil production facilities in 1951, leading to his overthrow in a CIA-orchestrated coup in 1953.

Mohammad Reza Pahlavi

The tyrannical but pro-Western Shah of Iran who was reinstated after the 1953 coup, leading to a popular rebellion in 1979 that overthrew his regime.

Ayatollah Khomeini

The Islamic revolutionary leader who led the 1979 overthrow of the Shah and established the current Islamic Republic of Iran.

President Truman

The U.S. president who declined the British government's request for assistance in overthrowing Mossadegh in 1951.

President Eisenhower

The U.S. president who authorized the CIA to orchestrate the overthrow of Mossadegh in 1953.

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What they’re saying

“With so much blood on U.S. hands, it's no wonder Iran's revolutionaries viewed America as the 'Great Satan' and termed our embassy a 'nest of spies.'”

— William Holland, Durham resident

What’s next

The long-standing tensions between Iran and the United States, rooted in the CIA's involvement in the 1953 coup, continue to shape global politics and the global economy. Any potential military conflict between the two countries would have severe consequences for oil supply and prices worldwide.

The takeaway

The history of U.S. intervention in Iran, particularly the CIA-orchestrated overthrow of the country's democratically elected leader in 1953, has had lasting geopolitical and economic ramifications. This troubled history has fueled decades of anti-American sentiment in Iran, which continues to influence global affairs and the global oil market.