CENTRAL NEWS
If world wide supply is decreasing, this would subsequently mean that prices would be increasing, taking into account the decreasing reserves of oil. Yet, the opposite is happening. Oil prices have been decreased by Saudi Arabia and Russia in an economic war, and reserves are running dry. During a time when the whole world is watching stock shares, clueless of what they mean, it becomes meaningful to understand the blood behind the oil which the whole world claims rights to, but only the Middle East pays the price for.
To fight, you need access to oil.
Oil was discovered in Iran by treasure hunters, located between the Gulf and Masjed Soleyman. Being exploited by Britain first in 1902, quickly the Middle East was made England’s ‘sphere of interest’ and a gateway to India.
A Persian-British contract was signed in an atmosphere where most of Iran’s economy was reliant on Britain. Yet, it soon appeared that Russia also had plans for the region. While England was struggling to find oil and produce the necessary equipment to extract the oil, Russia closed in occupying Northern Persia. In 1908, upon the discovery of an oil well, Britain and Russia divided modern day Iran into ‘spheres of interest’. A ‘neutral area’ left unoccupied by the hegemons, was settled in by nomads who lived in tents. By 1912, the British had built 200km of pipeline from Masjed Soleyman til the Gulf, where oil was to be distributed to the world.
Playing a big role in World War 1 in the efficiency and advancement in mechanisation, Germany soon collapsed because of a shortage of oil from Romania. With the collapse of the Ottoman Empire in 1918, Ottoman Turks were driven out of Mesopotamia by Britain and their Arab allies. Winston had declared, ‘Without oil, a great nation could not survive,’ and the world became hungry for oil and it’s military advantage. Consumption multiplied.
France and Britain, determined to bring oil fields in Mesopotamia under their control, both aspired a mandate by the league of nations in Geneva. As both had shown military presence in the area, the League of Nations agreed. The negotiations leading to the Skyes-Picot agreement occurred between 23 November 1915 and 3 January 1916, on which date the British and French diplomats, Mark Sykes and François Georges-Picot, initialled an agreed memorandum. The agreement divided Southern and Western Kurdistan within newly formed Syria and Iraq.
Worried about the depletion of oil sources, Washington looked to Saudi Arabia who’s oil fields had hardly been touched during the war. Americas most famous oil explorer and geologist was commissioned to Saudi in 1943 to explore. The expert predicted that in the future the Middle East would be the centre of oil production. Rossevelt was convinced by his home secretary that Saudi must be declared as an ‘American area of interest.’ Shortly after, America and Britain had divided the Middle East amongst themselves. Iraq and Kuwait was to be shared, while Saudi was claimed by America and Iran by Britain.
Ibn Sauds empire, at a young 20 years at the time, had emerged from a pact of the Sauds and sect leader Abdul Wahab in the 18th century who called for return to the purity of the belief of Prophet Mohammed. Forming the Ikhwan, the first Saudi army, Ibn Saud and Abdul Wahab’s forces gained control of Saudi forming the Kingdom of Saudi Arabia. The Rashids, coupled with the unpopular Turks, had lost control of Riad and were soon defeated. Still Hashemite ruler, Huseyin Bin Ali, who as pro-consul for the Turks administered the holy sites of Islam: Makkah and Madinah. Ibn Saud became king of Saudi Arabia in 1932.
Refusing to imitate the ways of the ‘infidels’ in the name of modernisation, the Saudi Kingdom refused America access to the riches of its country. America persisted on Arabian oil and cut Saudi’s economic lifeline by oversupplying pearls. Mekkah was deserted and Ibn Saud became a poor man and ‘salvation’ came from an American oil company, Standard Oil, in 1933. Facing religious objections by the people, the King had asked the Wahabi council of senior religious scholars to issue a fatwah to permit the contract which had been signed between America and Saudi Arabia. The worlds largest oil field was built, Saudi was to be exploited.
Across the Gulf, in Abadan of Persia, Riza Shah, a general of the palace guard agreed with Germany in the wake of World War 2 after falling out with Britain over Iranian shares in the oil revenue. After Hitler invaded Russia, London was no longer opposed to Russia’s occupation in Persia. Riza was forced to resign by Britain and Russia, his successor to be his son was confined without power to the walls of his palaces.
Withdrawing from Iran after the cold war in 1946, Russia’s leave sparked growth within communist parties and namely the Tudeh party. Russia-supported Mohammed Musaddik of the Tudeh party was elected in 1951 with the help of soviet diplomat Silin in 1948, vowing to end British influence in Iran. America intervened, sending mediation to the increasingly nationalist Iran. Despite weeks of negotiations, Musaddik was persistent on the independence of Iran. The British was given one week to leave. The fight for power between Musaddik and Riza brought the country to near internal conflict. Silin had been appointed ambassador in Tehran. America saw the spread of Russian influence in the Middle East as a threat. Under operation AJAX, agreed by America and Britain, Musaddik was to be killed and replaced by a general loyal to Riza. Soon, Shah came into power and Iran received 50% of the shares of American-Iranian oil companies exploiting its land.
‘Arabian oil for the Arabs’
Abdul Nasser, the Egyptian President and most powerful man in Middle East happened to be an Arabian nationalist who hated Israel, the colonial powers, and oil companies.
Nasser demanded payment of half of the fees from the French and British, and blocked the Suez canal with sunken boats to stop oil companies from travelling. Cairo was bombed and Port Saeed was occupied. Becoming bankrupt soon after the second World War, Britain and France were forced to immediately abandon the Suez canal to the UN’s Blue Helmets as initiated by then American president Eisenhower.
Britain’s deteriorating power affected its position in Iraq. King Faisal, being a strong supporter of the exploitation of Iraq by Britain, was killed by the increasing nationalistic masses in a coup. Afraid, Britain withdrew from Baghdad.
With the liquidation of Britain i Iraq, everything the hegemon brought with it was also liquidated. The parliament was dissolved, the army had turned against Britain. Newly in power, General Abdul Qassim set its eyes on the last piece of land in the middle east being occupied by Britain: Kuwait. Economically unable to stop Iraqi intervention in Kuwait, Iraq with the support of Washington, also jumped to idea of gaining control of a region pregnant to 58% of the worlds certified oil reserves.
