<P> Opposed to foreign intervention in Iran and a keen nationalist, Mohammed Mosaddeq became the prime minister of Iran in 1951 . Thus, when Mosaddeq was elected he chose to nationalize the Iranian oil industry, where previously British holdings had generated great profits for Britain through the Anglo - Iranian Oil Company . Furthermore, prior to the nationalisation of Iranian oil Mosaddeq had also cut all diplomatic ties with Britain . The Shah of Iran, Mohammad Reza Pahlavi was opposed to the nationalisation of Iranian oil as he feared this would result in an oil embargo, which would destroy Iran's economy and thus, the Shah was very concerned with the effect of Mosaddeq's policies on Iran . Equally worried were workers in the Iranian oil industry, when they experienced the economic effect of the sanctions on Iranian oil exports which Mosaddeq's policies had resulted in, and riots were happening across Iran . </P> <P> Thus, Mohammad Reza Pahlavi asked Mosaddeq to resign, as was the Shah's constitutional right, but Mosaddeq refused, which resulted in national uprisings . The Shah, fearing for his personal security, fled the country but nominated General Fazlollah Zahedi as new Prime Minister . Although General Fazlollah Zahedi was a nationalist, he did not agree with the Mosaddeq's lenient attitude towards the communist Tudeh party, which the United States had also become increasingly concerned with, fearing Soviet influence spreading in the Middle East . Therefore, in late 1952, the British government asked the U.S. administration for help with the removal of Mohammed Mosaddeq . President Harry S. Truman thought Mossadeq was a valuable bulwark against Soviet influence . However, Truman left office in January 1953, and the new administration of Dwight Eisenhower shared British concern over Mossadeq . Allen Dulles, the director of the CIA, approved one million dollars on April 4, 1953 to be used "in any way that would bring about the fall of Mossadegh" Consequently, after a failed attempt on August 15, "on August 19, 1953, General Fazlollah Zahedi succeeded (with the help of the United States and Britain) and Mossadegh was overthrown . The CIA covertly funneled five million dollars to General Zahedi's regime on August 21, 1953 ." </P> <P> This CIA operation, often referred to as Operation Ajax and led by CIA officer Kermit Roosevelt, Jr., ensured the return of the Shah on August 22, 1953 . </P> <P> Today more than a quarter of the world's oil is shipped through the Suez Canal . </P>

History of united states involvement in the middle east