The tumultuous period of the nationalisation of Iran’s oil industry during the tenure of Prime Minister Mohammad Mosaddeq, which began with its approval in 1951 and concluded with the signing of the consortium agreement in 1954, serves as the focus of the present analysis. This brief, full-scale nationalization, lasting only three years, was characterised by significant and decisive changes, including the bloody strike of March 1951 and the coup in August 1953. Following the coup, the nationalisation efforts were effectively terminated, and a year later, a new agreement was signed with a consortium of major oil companies, where the former Anglo-Iranian Oil Company, now renamed British Petroleum, held a 40 per cent stake. The primary focus of this research is the impact of nationalisation on the lives and work of the oil industry’s workers during this period. It questions whether Mosaddeq’s government was able to implement fundamental improvements in the workers’ conditions in such a short timeframe. Additionally, it explores the forms of workers’ support for the nationalisation of the oil industry and investigates why the workers, who had previously engaged radically in the bloody strikes of 1946 and 1951, were absent from the political scene during the 1953 coup.

A transformative period in Iran’s oil industry was heralded by the entry of an international oil consortium, initiating a new era in exploration, refining, and global marketing of Iranian oil, characterised by a shift from British to predominantly American leadership. The consortium’s early initiatives included transferring all non-industrial services, such as education, health, and housing – previously managed by the Anglo-Iranian Oil Company – to a newly established department within the National Iranian Oil Company, now known as the Organisation of Non-Industrial Tasks. Additionally, the consortium significantly reduced the industry’s workforce, leading to widespread unemployment among various worker segments in Iran. This economic downturn, where the rising cost of living was unaligned with wages, incited labour protests within the oil industry. The analysis also probes into a significant challenge faced by the Iranian government and its primary supporter, the United States: navigating the substantial hurdles during this era. This examination offers profound insights into the complex interplay between international business interests, local economic conditions, and labour dynamics amid the geopolitical shifts that were reshaping the socio-economic landscape of Iran during this critical juncture.

Upon the discovery of oil in 1908, the oil industry in Iran underwent a swift and extensive expansion, precipitating rapid industrialisation and significant demographic transformations that fundamentally redefined social relations, societal structures, and governance both locally and nationally. Central to these transformative processes was the development of oil towns, which emerged as crucibles of change, profoundly reconfiguring traditional lifestyles, and labour practices. This chapter delves into the complexities of managing oil production in areas not wholly subsumed under the aegis of the Iranian central government. It highlights the significant challenges encountered in cultivating a stable workforce and inculcating a culture imbued with principles of labour discipline, orderliness, and punctuality. These shifts presented formidable obstacles, especially for tribesmen traditionally engaged in nomadic pursuits, who found themselves compelled to transition to regimented forms of employment. Further, this discussion extends to the strategic recruitment and deployment of Indian workers, initially engaged for security purposes, whose roles evolved to encompass skilled, semi-skilled, and clerical positions, ultimately cementing their place as a permanent fixture within the industry. This narrative underscores the profound and multifarious impacts of the oil industry on the social and economic terrains of Iran.

The conclusion of the Second World War marked a significant turning point in global dynamics, particularly evidencing the decline of British global supremacy. Economic crises engendered by the war, coupled with the political repercussions of Indian independence, accelerated the dissolution of the British Empire. One salient indicator of this decline was Iran’s decisive move toward the nationalisation of its oil industry, a pivotal moment extensively analysed in this chapter. The Labour government in Britain, assuming power at the war’s end, aimed to revise its policies to maintain its monopoly in the Iranian oil sector by improving workers’ conditions. However, these efforts proved too limited and belated to effectively counter the rapid political developments in Iran, ultimately leaving Britain without a favourable strategic position in the Iranian context. The narrative then shifts to explore the working and living conditions within the Iranian oil industry in the late 1940s, highlighting the increasing poverty, entrenched housing, and health problems. It also examines the oil company’s response to the emerging labour movement and delves into the workers’ role in the nationalisation process. Additionally, the discussion encompasses the broader impacts of the withdrawal of British experts from Iran, focusing on the long-term effects on the lives and work of industry employees. These events significantly shaped the socio-economic landscape of the region and influenced the global power structures in the post-war era.

Often referred to as the ‘Oil Century’, the Twentieth Century marked the rise of petroleum as a pivotal force in global economics and politics. While many studies have explored the political relations between oil corporations and the Iranian state, this innovative book builds an intricate picture of the social history of petroleum in Iran, after its discovery there in 1908. Through expert interviews and on-the-ground reports, Touraj Atabaki shows the seismic impact of oil: from the building of roads to an influx of migrant labour. Offering insights into the lives and challenges of oil workers alongside analysis of wider geopolitical conflicts, Toiling for Oil traverses two world wars, industrialisation and modernisation, attempts at nationalisation in the 1950s and the political crises of the late 1970s. An essential read for anyone interested in Iran’s unique position in the global economic landscape as oil continues to shape our world.

Delving into ‘Development Sociology,’ the 1960s are labelled as the ‘Development Decade’ in United Nations parlance, a period recognised for its widespread economic and political reforms globally, particularly in the Global South. During this transformative period, a critical linguistic shift occurred: societies once labelled ‘underdeveloped’ were now referred to as ‘developing countries,’ a designation symbolising their potential to surmount longstanding economic stagnation and poverty. The driving forces behind this development were the developmental states, which, through authoritarian and swift modernisation efforts, aimed to ascend to the ranks of developed nations. Iran exemplified such nations, where a surge in oil revenues, significantly bolstered by OPEC, laid the foundation for rapid, albeit uneven, economic growth. This growth catalysed profound transformations in the working and living conditions of workers, particularly evident in Iran’s oil industry. Reflecting on this period, the examination of the daily lives of these workers reveals how the uneven pace of development markedly influenced their existence, offering insights into the intricate interplay between national development strategies and their palpable effects on the labour force amid global economic shifts.

Exploring the pivotal role of oil in the social and economic development of Iran between two World Wars, the era was marked by the establishment of a modern state aimed at ensuring territorial integrity and creating a homogeneous society within defined geographical borders. Such transformative efforts led to the collapse of the Qajar dynasty and the ascent of Reza Shah Pahlavi’s centralised and authoritative government. During this period, extensive social and economic development policies radically transformed the fabric of Iranian society, notably through the state’s substantial role in industrial investment, which significantly increased the number of industrial workers. Despite these broad changes, operations in the oil industry continued as initially established, resulting in dissatisfaction among both Iranian and Indian workers. This discontent gave rise to a series of labour strikes in the 1920s, underscoring the workers’ capacity to influence the shaping of civil society. Concurrently, the imperative for oil revenue coupled with the Iranian government’s insistence on employing local labour precipitated the cancellation of the D’Arcy Agreement and the signing of a new contract in 1933. A crucial term of this contract was the ‘Iranianisation’ of the workforce, which gradually increased the presence of skilled Iranian workers within the industry. This strategic shift not only redefined employment and living conditions but also facilitated the expansion of oil towns, where policies of ethnic and employment segregation were widely implemented, reflecting the broader national goals of integration and societal standardisation.

Examining a sixteen-year period of oil labour history in Iran, beginning with the inauguration of Iran’s Third Development Plan in 1962, this analysis highlights a timeline where rapid economic growth persisted until 1976, subsequently leading to an economic crisis in 1977 and culminating in the revolution of 1978–79. Contrary to typical revolutionary patterns, this study argues that the Iranian Revolution was precipitated not merely by the short-lived economic recession but by more than a decade of rapid economic expansion beforehand. Despite varying interpretations of the economic and political roots of the 1978–79 revolution, there is a consensus among scholars about the decisive role played by the oil industry workers’ entrance into the revolutionary scene, which was pivotal for the revolution’s significant momentum. Revisiting the chronology of the revolution, this exploration delves into how workers in the Iranian oil industry prominently emerged during these upheavals and investigates how an industry, whose labour movements were historically shaped by a secular work and life culture, gradually came to embrace the Islamic leadership of Ayatollah Khomeini. Ultimately, this analysis seeks to examine the evolution of the positions of Iran’s oil working class in the year leading up to the collapse of the monarchy in Iran, striving to achieve a broader understanding of the determinative power of labour movements in political upheavals.