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At the time, The New York Times called him "the most popular politician in the country." Nonetheless, a military showdown followed against pro-Mossadegh officers with each side staking their careers on the outcome.
He was deposed. Reza Shah Pahlavi replaced him. Sanctions were lifted, and America and Britain regained an Iranian client state until February 1979 when the same Anglo-American interests turned on the Shah and removed him.
As late as 1977, Jimmy Carter declared Iran an "oasis of stability." He ignored years of brutal regime repression. In 1978, a White House Iran task force recommended replacing the Shah with Ayatollah Khomeini. He was then living in France.
It was part of a larger scheme to balkanize the region along tribal and religious lines. It also sought to create an "arc of crisis" through Central Asia to Soviet Russia.
Accomplishing it in 1978 became urgent. The Shah was negotiating a 25-year oil deal with British Petroleum (BP), but talks broke down in October. BP demanded exclusive rights to future output but refused to guarantee oil purchases.
The Shah balked and sought new buyers in Europe and elsewhere. He also hoped to create a modern energy infrastructure built around nuclear power. He wanted to transform Iranian and regional power needs.
He envisioned 20 new reactors by 1995 to diversify away from Iran's dependence on oil. He also wanted Washington's pressure to recycle petrodollars weakened, as well as increased foreign investments.
Alarmed, Washington tried blocking his plan but failed. As a result, its usual tactics followed. They included cutting Iranian oil purchases, other economic pressures, and fueled instability through oil strikes, religious rivalries, and other disruptive practices to incite anti-Shah sentiment.
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