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Initially, the US had no reaction to the coup that deposed the Shah, and installed a new socialist government. However, the British became nervous that nationalization by the left-leaning post-coup Iranian government threatened the oil supply to Britain.

To protect the oil supply, British Intelligence (MI6) developed a regime change plan and then asked the US for assistance, selling the job to the US State Dept and CIA as a blow against communism by claiming that Iranian Prime Minister Moussadeq was a communist sympathizer. Given the USSR's previous invasions of Iran, their expansionist tendencies, and promotion of worldwide communism, this story seemed plausible.

The CIA authorized a member of their Special Activities Division, Kermit Roosevelt, to render all possible assistance to his MI6 counterpart. Using carefully placed agents and inflammatory information, the MI6-CIA team incited a popular revolt and counter-coup against Moussadeg, opening the door for the return of the Shah, Reza Pahlavi.

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Q: In 1951 the Iranian prime minister placed the oil industry in Iran under the Iranian government control how did the US react and why?
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