The 1953 Iran Coup: How the U.S. Overthrew Mossadegh for Oil and Installed the Shah

u.s. iran coup 1953

What if one of the U.S.’s first covert regime changes set the stage for decades of anti-American resentment in the Middle East?

In 1953, the CIA and British intelligence (MI6) orchestrated a coup to overthrow Iran’s democratically elected Prime Minister, Mohammad Mossadegh. His crime? Nationalizing Iran’s oil industry, which had been controlled by the British-owned Anglo-Iranian Oil Company (now BP). The U.S. and UK framed the coup as a necessary Cold War move to prevent communism, but declassified documents reveal a more straightforward motive: protecting Western oil profits and geopolitical dominance.

This article examines the 1953 Iran coup, exposing how Operation Ajax toppled Mossadegh, installed the authoritarian Shah, and ultimately fueled the 1979 Islamic Revolution. Using declassified CIA files, historical accounts, and expert analysis, we’ll explore:

  • Why Mossadegh was overthrown (oil vs. Cold War rhetoric).
  • How the CIA and MI6 staged the coup (propaganda, bribes, and fake protests).
  • The long-term consequences, including the Shah’s brutal regime and Iran’s lasting distrust of the West.

By the end, you’ll understand how this pivotal event shaped modern U.S.-Iran relations—and whether America’s intervention created its own worst enemy.

TL;DR – Key Takeaways

✅ Mossadegh’s Nationalization: In 1951, Iran’s Prime Minister Mohammad Mossadegh nationalized the British-controlled oil industry, threatening Western profits.

✅ Operation Ajax: The CIA and MI6 (led by Kermit Roosevelt) plotted a coup in 1953, using propaganda, bribes, and staged riots to overthrow Mossadegh.

✅ Shah Installed: The U.S. reinstated the Shah (Mohammad Reza Pahlavi), who ruled as a dictator with U.S. backing for 26 years.

✅ 1979 Revolution: The Shah’s repression led to the Islamic Revolution, the U.S. hostage crisis, and decades of hostility.

✅ Declassified Proof: The CIA admitted its role in 2013, confirming the coup was about oil, not communism.

Background: Iran Before the Coup

Mossadegh’s Rise and Oil Nationalization

Mohammad Mossadegh, Iran’s democratically elected Prime Minister (1951-1953), was a nationalist who believed Iran should control its own resources. At the time, the Anglo-Iranian Oil Company (AIOC, now BP) dominated Iran’s oil, paying Iran only 16% of profits while Britain made billions.

In March 1951, Mossadegh’s government nationalized Iran’s oil industry, a move celebrated by Iranians but condemned by Britain. The UK responded with:

  • An oil embargo, blocking Iran from selling its oil internationally.
  • Propaganda campaigns painting Mossadegh as unstable or pro-communist.
  • Pressure on the U.S. to intervene, despite Mossadegh being a secular democrat.

Cold War Paranoia: The Red Scare Excuse

Though Mossadegh was not a communist, the U.S. feared Iran might align with the Soviet Union if destabilized. The UK exploited these fears, convincing President Eisenhower and CIA director Allen Dulles that Mossadegh was a Soviet pawn.

In reality, declassified documents show the coup was primarily about oil. A 1952 British memo stated:

“We… shall not be able to achieve our objectives in Persia unless there is a change of government.”

The stage was set for Operation Ajax.

The Coup Plot: Operation Ajax (1953)

CIA & MI6 Collaboration

The coup was a joint effort between:

  • MI6 (Christopher Woodhouse) – Wanted to reclaim control of Iranian oil.
  • CIA (Kermit Roosevelt, grandson of Theodore Roosevelt) – Ran the operation on the ground.

Their tactics included:

  1. Propaganda Campaigns
    • Paid Iranian media to portray Mossadegh as a madman and communist.
    • Spread rumors that he was selling Iran to the Soviets.
  2. Bribing Officials & Military Officers
    • The CIA spent millions bribing politicians, clerics, and generals to turn against Mossadegh.
  3. Staged Protests & Violence
    • Hired thugs to riot in Tehran, making it seem like Mossadegh had lost control.
    • Fake communist groups attacked religious sites, turning conservatives against him.

The Shah’s Role

The young Shah Mohammad Reza Pahlavi initially hesitated, fearing backlash. But after CIA pressure, he signed decrees dismissing Mossadegh. When Mossadegh refused to step down, the CIA orchestrated a military takeover on August 19, 1953.

Mossadegh was arrested, and the Shah returned as an absolute monarch—now fully dependent on U.S. support.

How U.S changed the leadership in Aghanistan
AFP/Getty Images

Why Did the U.S. Really Do It? Oil vs. Cold War

While Cold War fears played a role, declassified CIA files confirm the main motive was oil and economic control:

  • 1954 CIA memo admitted: “The principal objective… was to preserve Western control of Iranian oil.”
  • Kermit Roosevelt later wrote in his memoir that the coup was about “money, power, and oil.”

The U.S. and UK quickly renegotiated Iran’s oil under a new consortium:

  • British Petroleum (BP) kept 40% control.
  • U.S. oil companies (Chevron, Exxon) got 40%.
  • Iran received only 20%.

This arrangement lasted until the 1979 Revolution.

Aftermath: The Shah’s Dictatorship & 1979 Revolution

Repression Under the Shah

With U.S. backing, the Shah ruled with an iron fist:

  • SAVAK (his secret police) tortured and killed thousands of dissidents.
  • Censorship, rigged elections, and brutal crackdowns fueled public anger.

The 1979 Islamic Revolution

Decades of repression led to the 1979 Revolution, where:

  • Ayatollah Khomeini overthrew the Shah.
  • U.S. Embassy hostages were taken (52 Americans held for 444 days).
  • Iran became an anti-Western theocracy, partly due to the 1953 coup’s legacy.

Legacy: How the Coup Shaped Modern U.S.-Iran Relations

The 1953 coup had lasting consequences:

  1. Iran’s Distrust of the West – Many Iranians see the U.S. as an imperialist power that sabotaged their democracy.
  2. Blowback for the U.S. – The 1979 hostage crisis and decades of hostility stem from this intervention.
  3. A Blueprint for Future Coups – The CIA used similar tactics in Guatemala (1954), Chile (1973), and Iraq (2003).

Even President Obama acknowledged in 2013:

The U.S. played a role in the overthrow of a democratically elected Iranian government.”

FAQ: Common Questions About the 1953 Iran Coup

1. Was Mossadegh a communist?

No. Mossadegh was a secular nationalist, not a communist. The U.S. and UK exaggerated Soviet ties to justify the coup.

2. Did the U.S. admit its role?

Yes. The CIA declassified documents in 2013 confirming its involvement.

3. How did this lead to the 1979 Revolution?

The Shah’s U.S.-backed dictatorship fueled anger, leading to Khomeini’s rise.

4. Was the coup justified for “stability”?

Critics argue it caused long-term instability, radicalizing Iran and harming U.S. interests.

Final Thoughts: Did the U.S. Create Its Own Enemy?

The 1953 Iran coup was a turning point in Middle East history. By overthrowing a democratic leader for oil, the U.S. and UK planted the seeds of anti-Western extremism—leading to the Islamic Revolution and decades of conflict.

Was it worth it? Share your thoughts below.


Sources & Further Reading

Books:

  1. Kinzer, S. (2003). All the Shah’s Men
  2. Kinzer, S. (2013). The Brothers

Documents:

  1. Declassified CIA Files on Operation Ajax (2013)

Films:

  1. Coup 53 (2019)
  2. The Power of Nightmares (BBC, 2004)

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