Black Gold and the Suez Crisis: Oil, Nasser, and the End of British Power in the Middle East

In the previous blog, we looked at the Arab-Israeli conflicts, a struggle rooted one hundred years ago that continues to bleed the Middle East today. Now we turn to the subject that has been behind the greatest imperial interventions and coups of the 20th century: black gold. Oil.

From the early 1900s, the right to extract and process Iranian oil had been held by a massive British monopoly, the Anglo-Iranian Oil Company (AIOC), the predecessor of the oil giant now known as BP (British Petroleum). This arrangement was renewed through a new agreement in 1933.

After the Second World War, as Britain lost much of its global empire and its power began to fade, the Iranian people were receiving almost nothing from the enormous wealth flowing out of their own land. The Iranian government initially asked for a revision of the agreement, a modest increase in the share being paid to Iran by the company.

But Dr. Mohammad Mosaddegh, the visionary leader of the nationalist front in the Iranian parliament, firmly rejected these surface-level compromises. His vision was far more radical: the immediate nationalisation of Iranian oil and the complete removal of foreign monopoly control. Backed by overwhelming public support, Mosaddegh was appointed Prime Minister of Iran on 28 April 1951, and his very first act was to announce to the world the official nationalisation of Iranian oil. For Britain, this was nothing less than the cutting of its economic lifeline in the Middle East.

25 July 1952 issue of the Tehran Mosavvar: "Iran has won", featuring Mosaddegh and Churchill.

The Suez Crisis

Before we get into the Suez Crisis, I want to share a small personal note. During my undergraduate studies, I read a play about the British Empire and its then Prime Minister Anthony Eden. The Suez Canal crisis and Gamal Abdel Nasser both appeared in that text. At the time, I only had a surface-level understanding of the events. Now, we are about to see the full picture.

On 23 July 1952, a military coup carried out by the Free Officers Movement brought Lieutenant Colonel Gamal Abdel Nasser to power in Egypt. Once in office, Nasser worked toward two ambitious goals: the creation of a collective security pact among Arab states, an Arab Union, and the building of a broader solidarity under the umbrella of Islam.

But Nasser’s larger vision went even further. He wanted to form a Third Bloc a new power block positioned between the Eastern and Western blocs of the Cold War. However, the establishment of the Baghdad Pact disrupted his plans entirely.

Egyptian President Gamal Abdel Nasser and Soviet leader Nikita Khrushchev at the foundation ceremony of the Aswan High Dam.

When the US and the World Bank refused to fund the Aswan Dam project, Nasser responded by nationalising the Suez Canal. In 1956, Nasser announced the nationalization of the Suez Canal, which was under British-French joint ownership. Following this, America, Britain, and France made numerous attempts to remove Suez from Egyptian control but were unsuccessful.

Upon Nasser's rejection of the proposal to leave the canal under international control, Britain, France, and Israel came together and prepared a plan to seize the canal. (This is the event that was the subject of the theatrical play I mentioned earlier; the play drew its reference from here.) According to this plan, Israel would attack Egypt; Britain and France would then deploy troops to the region under the pretext of ending the war, and subsequently take over the canal. In accordance with this plan, Israel launched an attack against Egypt on October 29, 1956.

Following their ultimatum to the parties to “end the conflict,” Britain and France began deploying troops to the region via the Mediterranean. USSR Premier Nikolai Bulganin sent a message to US President Eisenhower, requesting that the US and the USSR send a joint force to Egypt to stop the war, stating that otherwise, this could lead to World War III. However, the US strongly opposed the joint force proposal and declared that it would take the necessary measures if the Soviets sent troops to Egypt.

The US Government and public did not accept this attack initiated by Britain and France. Indeed, the US reaction was harsh; it issued a stern warning to Britain, France, and Israel, demanding their withdrawal from Egyptian territory. These states were forced to withdraw from Egypt. The Suez Canal was subsequently cleared and reopened to global maritime traffic in March 1957. The most important consequence of the 1956 Suez Crisis was that while the aim was to eliminate Soviet Russia's prestige and influence in the Middle East, it actually increased them even further.

World War I: How It Reshaped the Middle East

In our previous blog, we explored how the Soviet Union reshaped Central Asia with artificial borders and strict assimilation policies. However, they were not the only ones drawing lines on a map. At the exact same time, Western imperial powers were executing a similar “divide and rule” strategy in the Middle East.

Today, to understand the endless conflicts, border disputes, and political crises we see on the news every day, we must look back to the aftermath of World War I. The Middle East we know today was not formed by natural historical progression, but by the pens and rulers of European diplomats. 

Generated by AI

During the depressed days of World War I, Britain, France, and Tsarist Russia had already drawn the map of the Middle East behind closed doors. They divided the region among themselves through secret treaties (especially the Sykes-Picot Agreement). However, an unexpected storm broke out: Russia withdrew from the war due to the Bolshevik Revolution in 1917. The new Soviet government created a massive diplomatic crisis by exposing these secret imperialist plans to the whole world.

When US President Woodrow Wilson published his Fourteen Points (which explicitly opposed colonialism), the perfect plans of Britain and France took a heavy blow.

The San Remo Conference

However, these obstacles were not enough to stop the Western powers. The USA, disappointed by European politics, returned to its famous Monroe Doctrine (Policy of Isolation). This massive shift left the Middle Eastern stage entirely to Britain and France. Breathing a sigh of relief without the pressure of the USA, these two powers found a new disguise to achieve their goals: The Mandate System. Consequently, at the San Remo Conference in 1920, this new version of colonialism was formalized. They reached a strict consensus to officially divide the Middle Eastern territories under mandate regimes.

After the resolution on 25 April 1920, standing outside Villa Devachan, from left to right: Matsui, Lloyd George, Curzon, Berthelot, Millerand, Vittorio Scialoja, and Nitti. Enhanced by AI

Middle East Map

According to the official excuse of the League of Nations, some regions were not yet capable of “governing themselves” or “protecting their lands from attacks.” Therefore, it was argued that these nations should be managed by a “developed” state until they reached a certain level of maturity.

By the early 1920s, the Middle East was divided between two major imperial powers:

• France: Took Syria and Lebanon under its mandate. It also strengthened its control over Algeria and Tunisia in North Africa.
• Britain: To protect its trade routes to India and secure oil fields, it brought Iraq, Palestine, Jordan, and Kuwait into its mandate system. It also took strategic points in the Arabian Peninsula under its protection.

It was an announcement that the future of millions of people would be decided by others.

Emir Faisal's party at Versailles, during the Paris Peace Conference of 1919; left to right: Rustum Haidar, Nuri al-Said, Prince Faisal (front), Captain Pisani (rear), Lawrence, Faisal's servant (name unknown), Captain Hassan Khadri

Empty Promises and the Spark of Resistance in Egypt

While Britain and France were dividing the Middle East on paper, they needed to soften the inevitable anger of the local people. To do this, they issued a joint declaration on November 7, 1918, promising Arab nations the right to “establish their own democratic governments.” However, it soon became clear that these promises were nothing more than a stalling tactic.

The first major crack in this colonial system appeared in Egypt. Britain's attempt to establish total dominance clashed heavily with Egyptian nationalists. The Wafd Party, founded by Saad Zaghloul in early 1919, led a massive resistance movement, organizing strikes and protests throughout the country. Britain tried to extinguish this fire by exiling Zaghloul and other leaders, but this move backfired and only fueled the public's anger.

Stepping Back: The Winds of Independence

Faced with a growing and unstoppable crisis, Britain was forced to declare Egypt's independence with a declaration on February 28, 1922. The ruler of the time, Khedive Fuad I, accepted this declaration and took the title of King (Melik). At the end of this long struggle, Egypt completely abolished capitulations in 1937 and became a member of the League of Nations.

It wasn't just Britain; France also had to bow to the resistance in the region. Due to increasing nationalist pressures, France was forced to sign treaties paving the way for independence for Syria in 1930 and Lebanon in 1936.

The Middle East we know today was manufactured in European conference rooms. Sykes-Picot, San Remo different names for the same ambition. However, the wounds never healed. In our next post, we turn eastward to Japan, and the Meiji Restoration.