politicsanalysisThe Conversation (US)1951–1953 · Iran

Economic coercion once ousted Iran’s leader – but that was the 1950s; don’t expect a repeat today

the gist

In March 1951 Iran's parliament, pushed by Mohammad Mossadegh, nationalised the British-controlled Anglo-Iranian Oil Company, which many Iranians saw as reclaiming national wealth and Britain saw as theft of its biggest overseas asset. Britain responded with economic pressure: it refused Iranian oil receipts on international markets, blockaded the coast and stopped tankers carrying Iranian oil, banned exports such as sugar and steel, froze Iranian assets and shut the Abadan refinery. After two years of strain, a British- and American-backed plot in 1953 removed Mossadegh.

how it works

A blockade cuts a country's income from exports and its access to imports. Without oil revenue, the government loses foreign currency and the economy weakens, putting pressure on the leadership, though the effect depends on whether the target can find workarounds or hit back.

so what

Economic blockades have been used to try to change governments before, and 1953 is the best-known Iranian example. How the two situations differ is central to judging whether pressure on Iran today can work.

has this happened before?

Embargoes and blockades have long been used to coerce states, from Britain's blockade of Germany in 1914–1918 to modern sanctions regimes. Their record is mixed: they often hurt civilians and can rally support for the targeted government, and the 1953 coup is often cited in Iran as a source of lasting distrust of Western powers.

more on this

background

On 19 August 1953 a coup d'état overthrew the Prime Minister of Iran, Mohammad Mosaddegh, strengthening the rule of Mohammad Reza Pahlavi, the Shah of Iran. It was instigated by the United Kingdom (MI6), under the name Operation Boot and by the United States (CIA), under the name TP-AJAX Project or Operation Ajax. A key motive was to protect British oil interests in Iran after Mosaddegh had nationalized the country's oil industry in 1951.

From Wikipedia: 1953 Iranian coup d'état (CC BY-SA 4.0) ↗ · text CC BY-SA 4.0

key facts

Country
Pahlavi Iran
Started
18 August 1953
Ended
19 August 1953

Facts: Wikidata (CC0)

The Conversation

Illustrative photo · Unknown author, Public domain, via Wikimedia Commons