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How a secret CIA operation in 1953 set the stage for decades of tension between Iran and United States

How a secret CIA operation in 1953 set the stage for decades of tension between Iran and United States
Code-named “Operation Ajax,” the joint CIA-MI6 covert operation successfully orchestrated the overthrow of Iran’s democratically elected Prime Minister, Mohammad Mossadegh (Representational AI photo)

The United States and Iran are once again caught in a dangerous military confrontation. The hostility between the two countries did not begin with the latest strikes and goes back long. For decades, Washington and Tehran have been locked in a bitter rivalry shaped by political distrust, regional conflicts and a history of foreign intervention.More than 70 years ago, the CIA helped organise a secret operation that removed Iran’s elected Prime Minister Mohammad Mossadegh and strengthened the rule of Shah Mohammad Reza Pahlavi.That operation, known as Operation Ajax, became one of the earliest major examples of a US-backed regime change effort. While Washington viewed it as a Cold War victory at the time, its consequences shaped Iran’s politics for generations and contributed to the deep mistrust between the two countries.The events of 1953 shaped Iran’s future, contributed to the rise of opposition against the Shah and became one of the reasons behind the mistrust that defines US-Iran relations today.

Oil dispute triggered crisis

The roots of the 1953 crisis went back to Iran’s oil industry. For decades, Britain had controlled a major part of Iran’s oil resources through the Anglo-Iranian Oil Company, which was one of Britain’s most important overseas assets. Many Iranians believed their country was not receiving a fair share of its natural wealth.In 1951, Mohammad Mossadegh became the prime minister of Iran after gaining popularity through his nationalist policies. Soon after taking office, he moved to nationalise Iran’s oil industry, bringing it under Iranian control. The decision angered Britain, which depended heavily on the oil company.Britain responded with economic pressure, including sanctions and restrictions on Iranian oil exports. British ships blocked access around the oil facilities at Abadan, one of Iran’s main oil centres. The impact was severe. Iran’s oil production fell sharply, the economy suffered and unemployment increased, Roosevelt Institute of American Study writes.At the same time, the United States became increasingly concerned about instability in Iran during the Cold War. American officials were fearing that the political turmoil would allow the Soviet Union to gain influence in the country.Washington avoided direct action intially. But after Dwight Eisenhower became US president in 1953, American and British officials began working on a plan to remove Mossadegh.

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Demonstrators tear down the Iran Party sign outside its headquarters in Tehran on August 19, 1953, during the coup (AP file photo)

Inside Operation Ajax

The CIA, along with British intelligence officials, developed a covert operation to replace Mossadegh’s government with one that was more acceptable to Western interests.The operation was led by CIA officer Kermit Roosevelt Jr, the grandson of former US President Theodore Roosevelt.The plan included propaganda campaigns, political pressure, payments to individuals and attempts to gain support from the military officers. CIA-backed efforts also spread anti-Mossadegh messages through Iranian media outlets. Political groups were also encouraged to organise protests against the prime minister.The Shah, Mohammad Reza Pahlavi, was initially hesitant to support the move. However, he eventually signed orders dismissing Mossadegh and appointing General Fazlollah Zahedi as prime minister.The first attempt failed. Mossadegh’s supporters discovered the plan, arrested some coup organisers and the Shah left Iran.For a short time, it appeared that the operation had collapsed. But days later, the situation changed. Crowds gathered in Tehran, and Zahedi emerged as the new leader. Mossadegh was arrested, and the Shah returned to power. The CIA considered the operation a success.

Shah’s rule and growing anger

After the coup, Mohammad Reza Shah strengthened his position with strong support from the United States. Iran received major American economic assistance, and the Shah pushed programmes aimed at modernising the country. However, opposition to his rule increased over time.However, Shah’s government was accused of suppressing political opponents through the intelligence agency SAVAK and many Iranians viewed him as a leader who depended heavily on the foreign backing.The anger against the monarchy eventually contributed to the Iranian Revolution of 1979. The revolution removed the Shah and brought Ayatollah Ruhollah Khomeini and the Islamic Republic to power.

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Operation Epic Fury

How 1953 shaped the US-Iran conflict

The events of 1953 became a key reason behind Iranian suspicion of American intentions. When the Shah entered the United States for medical treatment after the revolution, many Iranians feared Washington could attempt another operation to restore him.In November 1979, Iranian students seized the US embassy in Tehran and held 52 Americans hostage for 444 days. The hostage crisis ended diplomatic relations between the two countries and created a lasting divide.The 1953 coup did not just remove Mossadegh; it also changed how Iranians viewed the United States for generations. For many people in Iran, the operation became proof that Washington was willing to interfere in the country’s politics when its interests were threatened, Mises. org writes.The tensions continued through later decades, including disputes over Iran’s nuclear programme, US sanctions and Iran’s support for regional armed groups.In 2023, the CIA officially acknowledge its role in the 1953 coup that overthrew its prime minister and cemented the rule of Shah Mohammad Reza Pahlavi and called it undemocratic.

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