Cyprus Real Estate Marketplace

How Foreign Influence Shaped Iran's Relations with the West: A Historical Overview

How Foreign Influence Altered Iran’s Relationship with the West

On the early hours of March 2nd, Iran-backed Hezbollah carried out a drone assault on RAF Akrotiri (source). While the damage was minimal and no casualties were reported, the event highlights the ongoing tensions that have roots dating back decades of foreign involvement in Iran.

The 1953 Iranian Coup: A Turning Point

In the early 1950s, Iran was on the verge of establishing a parliamentary democracy under its constitutional monarchy. The Majlis (parliament) held real power alongside the Shah in appointing the prime minister and legislative decisions.

Mohammad Mosaddegh rose as a central figure during this period. As a member of the Moderate Socialists’ Party, he became prime minister in 1951 with the Shah’s initial support, championing the nationalization of Iran’s oil resources. His aim was clear: ensure that Iran’s rich oil reserves would benefit the Iranian people rather than the British-controlled Anglo-Iranian Oil Company (AIOC), later BP.

Election Controversies and Political Struggles

Mosaddegh’s parliamentary election was controversial. To secure a quorum, the voting was halted prematurely, blocking rural opposition and excluding the communist Tudeh Party despite its significant popular support. USA government documents, declassified decades later, show active CIA involvement in promoting opposition candidates to weaken Mosaddegh’s position.

Western Backed Coup and Its Fallout

The UK government, led by Winston Churchill, viewed Iran’s oil nationalization as a major threat to its post-war economy. After diplomatic efforts and sanctions failed, Britain enlisted the support of the United States’ CIA. In 1953, a covert joint operation by MI6 and the CIA orchestrated a coup through propaganda, bribery, and staged protests, which ultimately ousted Mosaddegh.

This operation marked the beginning of deep U.S. influence in Iran, eclipsing British presence and significantly influencing the country’s future.

The Shah’s Regime and Growing Authoritarianism

Following the coup, Shah Mohammad Reza Pahlavi regained power, and Mosaddegh was imprisoned. Although Iran negotiated a new oil revenue sharing with Western companies, the political landscape shifted toward authoritarianism. The Shah ruled through harsh repression, surveillance, and censorship, relying on the secret police SAVAK to silence opposition – whether communist, nationalist, or religious.

Instead of parliamentary democracy, Iran saw the rise of a pro-Western autocracy, increasing popular dissatisfaction and political exclusion.

The Rise of the Islamic Revolution

By the late 1970s, widespread grievances over inequality, repression, and foreign influence led to mass protests rallying around Ayatollah Ruhollah Khomeini. The monarchy collapsed, and the 1979 Iranian Revolution replaced the Shah with an Islamic Republic.

Although initially a new political system with broader participation was anticipated, Khomeini’s movement quickly suppressed opposition, consolidating power under an Islamic theocracy that persists today.

Ongoing Iran-West Relations and Regional Impact

The 1953 coup set the stage for decades of antagonistic relations between Iran and Western powers. The cycle of intervention, sanctions, military pressure, and Iran’s retaliatory proxy actions continues to shape Middle Eastern geopolitics.

As recent as February 2026, escalating military conflicts between the US, Israel, and Iran underscore the lingering tensions over nuclear ambitions and regional dominance. Missile strikes, drone attacks, and military interventions have deepened the instability in a region critical to global energy supplies and trade routes.

What started as a dispute over oil ownership now defines a complex, often confrontational, relationship with lasting implications.

For Cyprus real estate investors interested in secure opportunities amid geopolitical fluctuations, explore our listings of Cheap Houses and Villas for Sale Cyprus and diverse Plots of Land for Sale to find your ideal property in stable and thriving locations.

  • INDEX is the largest Real Estate marketplace in Cyprus. We strive to bring technology and data related to properties in one place.
  • Message Us

Support

© INDX Ltd. 2025 Registered in Cyprus with Registration number HE443934.

We are not a Real Estate agency and do not operate as an Agency.