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Home News World

Why Did America and Iran Become Enemies? A History of Conflict, Oil, and Revolution

WORLD / Special Report

by Kakali Das
February 10, 2026
in World, Business, Special Report
Reading Time: 10 mins read
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Why Did America and Iran Become Enemies? A History of Conflict, Oil, and Revolution
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Why Did America and Iran Become Enemies? A History of Conflict, Oil, and Revolution

KAKALI DAS

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KAKALI DAS

The relationship between the United States and Iran is one of the most complex and troubled relationships in modern history. The two countries were once close partners, but today they stand as strong rivals.

Their conflict did not begin suddenly. It grew slowly over more than a century, shaped by foreign intervention, oil politics, war, revolution, ideology, and deep mistrust. To understand why America and Iran became enemies, we must look back at their long and difficult history.

Why Did America and Iran Become Enemies? A History of Conflict, Oil, and Revolution

In the nineteenth century, Iran, which was then called Persia, was officially independent. However, in reality, it was under strong pressure from two powerful empires, Britain and Tsarist Russia. Britain wanted to protect its colony, British India, and secure trade routes in the Middle East. Russia wanted to expand its influence in northern Iran. Because of this rivalry, Iran’s politics and economy were heavily influenced by foreign powers. Iranian rulers often depended on outside support to stay in power.

The situation changed dramatically in 1908 when large reserves of oil were discovered in Iran. Oil was becoming the most valuable resource in the world because it powered ships, industries, and later cars and planes. An English businessman, William Knox D’Arcy, had signed an agreement with the Qajar ruler of Iran in 1901. This agreement gave him the right to search for and extract oil in most parts of the country for sixty years. In return, Iran would receive only a small share of the profits, around sixteen percent. Soon, the British government became involved and formed the Anglo Persian Oil Company. By 1914, Britain had taken majority control of the company. Iranian oil began to fuel the British navy and economy, while Iran received only limited benefits from its own natural wealth.

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Over time, many Iranians began to feel that their country was being exploited. They saw that foreign companies were taking most of the oil profits while poverty and unemployment remained high inside Iran. In 1925, Reza Shah Pahlavi came to power with British support. He tried to modernize Iran and strengthen the central government. For many years, he worked with Britain. However, when World War II began in 1939 and Germany seemed strong in the early years of the war, Reza Shah increased trade relations with Germany. This worried Britain and the Soviet Union.

Why Did America and Iran Become Enemies? A History of Conflict, Oil, and Revolution
A British Army supply convoy with a Soviet BA-10M armoured vehicle escort in Iran, September 1941

In 1941, British and Soviet forces invaded Iran. They forced Reza Shah to step down and sent him into exile. His young son, Mohammad Reza Pahlavi, became the new Shah of Iran. During the war, Iran became an important supply route for the Allied forces. Weapons, food, and other supplies were transported through Iran to help the Soviet Union fight Germany. During this time, the United States also entered Iran in large numbers. More than thirty thousand American personnel were present to help with logistics and military support. This was the beginning of a strong American presence in Iran.

After World War II ended, Iran faced serious economic problems. Inflation was high, unemployment had increased, and many people were struggling with poverty. At the same time, the Soviet Union refused to withdraw its troops from northern Iran and supported separatist movements there. The United States opposed this move and brought the issue to the United Nations. Under international pressure, the Soviet Union withdrew its forces in 1946. This action increased America’s reputation in Iran. Many Iranians began to see the United States as a country that respected Iran’s independence, unlike Britain.

Why Did America and Iran Become Enemies? A History of Conflict, Oil, and Revolution

However, oil remained a major issue. The British controlled most of Iran’s oil profits, and Iran received only a small share. This angered many Iranians. In 1951, Mohammad Mossadegh, a popular and nationalist leader, became Prime Minister. He believed that Iran should control its own oil resources. He nationalized the Anglo Iranian Oil Company, ending British control over Iranian oil. This decision made him a hero among many Iranians.

Britain and the United States were unhappy with Mossadegh’s actions. They feared losing access to oil and also worried that Iran might move closer to the Soviet Union during the Cold War. In 1953, the British intelligence service and the American Central Intelligence Agency supported a military coup against Mossadegh. He was removed from power and placed under house arrest. The Shah regained full authority with strong American support.

Why Did America and Iran Become Enemies? A History of Conflict, Oil, and Revolution
Mohammad Mossadegh

This event left a deep wound in Iranian society. Many people believed that the United States had destroyed their democracy to protect its own interests. After the coup, America increased its financial and military support for the Shah. In 1954, a new oil agreement was signed. American, British, and other Western companies shared control over Iranian oil. The United States gained a large share of the oil trade.

The Shah began a program of modernization called the White Revolution in 1963. It included land reforms, expansion of education, and voting rights for women. In big cities, lifestyles became more Western. However, many rural and poor communities did not benefit equally. Political opposition was suppressed. The Shah’s secret police, known as SAVAK, were accused of torturing critics. Many religious leaders believed that the Shah was moving Iran away from Islamic values and becoming too dependent on the United States.

Why Did America and Iran Become Enemies? A History of Conflict, Oil, and Revolution
Mohammad Reza Shah Pahlavi

One of the strongest critics of the Shah was Ayatollah Ruhollah Khomeini, a religious scholar. He accused the Shah of selling Iran to America and ignoring Islamic principles. In 1964, the Shah sent Khomeini into exile. He lived in Turkey, Iraq, and later France. From exile, Khomeini continued to send recorded speeches into Iran. These messages were widely shared and increased his popularity.

By the late 1970s, protests against the Shah had grown across the country. People demanded independence, freedom, and an Islamic government. The Shah declared martial law, but protests continued. In January 1979, the Shah left Iran, officially for medical treatment. In February 1979, Ayatollah Khomeini returned to Iran to massive public support. The monarchy was abolished, and Iran was declared an Islamic Republic. Khomeini became the Supreme Leader.

Ayatollah Ruhollah Khomeini
Ayatollah Ruhollah Khomeini

During the revolution, anger against the United States was strong because of its past support for the Shah and the 1953 coup. In November 1979, Iranian students took over the American embassy in Tehran. They held more than fifty American diplomats hostage. The crisis lasted 444 days. Khomeini supported the students and called America the Great Satan. The United States imposed sanctions and broke diplomatic relations with Iran. The hostage crisis deeply humiliated America and hardened attitudes on both sides.

In 1980, Iraq’s leader Saddam Hussein invaded Iran, hoping to take advantage of Iran’s instability. The Iran Iraq War lasted eight years and caused heavy casualties on both sides. The United States supported Iraq with intelligence and economic assistance, even though Iraq used chemical weapons. This further increased Iranian anger toward America.

Throughout the 1980s, tensions continued. In 1983, a bombing in Lebanon killed 241 American soldiers. The group Hezbollah, which had support from Iran, was blamed. In 1984, the United States listed Iran as a state sponsor of terrorism. In 1988, during naval clashes in the Persian Gulf, an American warship shot down Iran Air Flight 655, killing 290 civilians. The United States said it was a mistake, but in Iran the incident was seen as proof of American hostility.

Why Did America and Iran Become Enemies? A History of Conflict, Oil, and Revolution
Ayatollah Ali Khamenei

After Khomeini’s death in 1989, Ayatollah Ali Khamenei became Supreme Leader. Sanctions against Iran increased over the years, especially because of concerns about Iran’s nuclear program. Ironically, the United States had once helped Iran develop civilian nuclear technology in the 1960s. After the revolution, this cooperation ended.

In the 2000s, tensions rose again. After the September 11 attacks in 2001, President George W. Bush called Iran part of the axis of evil, along with Iraq and North Korea. America feared that Iran was trying to build nuclear weapons. Iran denied this claim and said its program was peaceful. In 2015, after long negotiations, Iran and six world powers signed the Joint Comprehensive Plan of Action. Under this agreement, Iran limited its nuclear activities in exchange for relief from sanctions.

For a short time, relations improved slightly. However, in 2018, President Donald Trump withdrew the United States from the agreement and reimposed sanctions. Tensions increased sharply. In 2020, the United States killed Iranian General QasemSoleimani in a drone strike in Iraq. Iran responded by launching missiles at American bases in Iraq. The same year, Iran accidentally shot down a Ukrainian passenger plane, killing 176 people. This tragedy shocked the world.

In recent years, conflicts in the Middle East have continued to involve both countries indirectly. Iran supports groups such as Hezbollah in Lebanon and other allied militias in the region. The United States supports Israel and several Arab countries. The Persian Gulf remains strategically important because a large share of the world’s oil passes through the Strait of Hormuz. Any conflict in this region can affect global trade and energy supplies.

US Iran 1

Inside Iran, economic problems have increased due to sanctions, inflation, and political restrictions. Many Iranians have protested against their government, demanding reforms and greater freedoms. Women have led protests against mandatory dress laws. The government has responded with force, leading to deaths and arrests. While these are internal issues, they also shape how Iran interacts with the world.

The hostility between America and Iran continues because both countries carry deep historical memories. For many Iranians, the 1953 coup, decades of sanctions, and foreign pressure are symbols of injustice. For many Americans, the hostage crisis, attacks on US interests, and Iran’s support for armed groups are seen as threats. National pride, political ideology, and regional rivalries make compromise difficult.

Today, there is no full scale war between the two nations, but their relationship remains tense and unpredictable. Sanctions, proxy conflicts, and nuclear negotiations continue to define their interaction. Whether this long enmity will end depends on political will, mutual trust, and changes within both societies. History shows that relations between nations can change over time.

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