To understand the full context of the American-led ‘53 coup against Mosaddegh in Iran it is imo critical to recognize anti-communism as a proximate cause. Write-up below:
It is commonly understood that the early decades of the 20th century in Iran are characterized by British colonial extortion of material resources (mostly oil) within the boundaries of “Persia” (pre-1935) / “Iran” (post). The penultimate monarchical dynasty, the Qajars, were ousted in 1925—but the exile of the last Qajar Ahmad Shah was the direct result of the 1921 military coup led by then-Reza Khan (later the first “Pahlavi”, Reza Shah) which was directed by Britain. And at this time, British anxieties heavily featured concerns about Bolshevik encroachment from the Caucuses (not just through the newly-formed Azerbaijan SSR, but also through domestic sympathizers that fueled such projects as large as the transient Persian SSR, put down by Reza Khan after Soviet withdrawal).
This is stage-setting. Of course, by the 50s, in tandem with Cold War thread-pulling, the Anglo-Iranian Oil Company constituted a thirsty tentacle of British imperialism sucking Abadan dry and contributing pittances to the local economy. It was in the midst of decades of growing resentment against this presence that Mosaddegh became Prime Minister in 1951 as the leader of the broad National Front coalition, and we are familiar with how intensely he campaigned for nationalizing the country’s oil and how pissy this made the British (here’s one and another post on the subject if not).
Here’s the detour: you may know that it was the CIA, an American institution, that orchestrated the ‘53 coup to oust Mosaddegh. But we were just now discussing threats against British colonial power in Iran. How did things get from B to A, as it were? We can’t take this for granted.
The British in fact spent the intervening two years trying to get Mosaddegh out by mobilizing the Shah and various right-wing (often clerical and mercantile) interests in Iran (this point, and much of what follows, draws from bits of Darioush Bayandor’s Iran and the CIA and Mostafa Elm’s Oil, Power, and Principle). They spent the same two years desperately trying to get the Americans on board with their efforts. But—here it is—the Truman regime and American foreign policy was in general intensely hostile to this strain of British interventionism in Iran, going so far as to issue warnings against it.
Why? Well, as you would expect, the Americans were concerned about Soviet influence in the region. Then-U.S ambassador in Tehran Henry Grady claimed that “Mosaddegh’s National Front party is the closest thing to a moderate and stable element in the national parliament” (Wall Street Journal, June 9 1951). This summarizes the American position at the time: Mosaddegh’s nationalist movement constituted the bastion against communism, and the US was very interested in the survival of this bastion lest Iran align with the USSR.
What happened between 1951 and 1953 is that British pressure, operating through the Shah and more conservative elements of the Iranian government, jeopardized moderate support for Mosaddegh. With the right and center-right against him an entire wing of National Front coalition was falling off, and Mosaddegh found himself leaning more and more on the strengthening Tudeh Party, which had grown in numbers to militaristic significance during Mosaddegh’s tenure (including a network of at least 600 officers in the state military). Tudeh, of course, was the pro-Soviet communist party in Iran. And now the threads come together.
It was in this context of Mosaddegh, backed into a corner with almost only the communists behind him, that the CIA released a memo on November 20th, 1952 singing a very different tune:
It is of critical importance to the United States that Iran remain an independent and sovereign nation, not dominated by the USSR...
Present trends in Iran are unfavorable to the maintenance of control by a non-communist regime for an extended period of time. In wresting the political initiative from the Shah, the landlords, and other traditional holders of power, the National Front politicians now in power have at least temporarily eliminated every alternative to their own rule except the Communist Tudeh Party...
It is clear that the United Kingdom no longer possesses the capability unilaterally to assure stability in the area. If present trends continue unchecked, Iran could be effectively lost to the free world in advance of an actual Communist takeover of the Iranian Government. Failure to arrest present trends in Iran involves a serious risk to the national security of the United States.
In light of the present situation the United States should adopt and pursue the following policies:...
Be prepared to take the necessary measures to help Iran to start up her oil industry and to secure markets for her oil so that Iran may benefit from substantial oil reserves...
Recognize the strength of Iranian nationalist feeling; try to direct it into constructive channels and be ready to exploit any opportunity to do so
It took two tries for the CIA to bring about a coup that removed Mosaddegh from power, but the objective of this coup was not the preservation of British control over Iranian resources; it was the maintenance of the Western sphere of influence against communist revolution (this was further prioritized by the arrival of the Eisenhower administration). In fact, after the coup the Anglo-Iranian Oil Company (now renamed British Petroleum) had to make room for six other companies from the US, France, and the Netherlands as part of a consortium, and this consortium would split profits with Iran 50/50. This is, to be clear, still colonialist extraction! But it constitutes a huge blow to British economic interests, because they were never the CIA’s goal. This is part of why the post-coup government is characterized far more as a US puppet than a British one.
It does remain that this was a sequence of events very much set in motion because of actions taken by the British government; by the time they managed to get shit to hit the fan, though, it was very much no longer in their control where the shit was flying.