The 1954 syndicated agreement gave Western oil companies, after their ratification in 1954, 40% of Iran`s oil production.  Introduction. The history of the Iranian oil deals began with an unprecedented concession made in 1872 by British Baron Julius de Reuter to Baron Julius de Reuter, a British subject of German origin (see CONCESSIONS ii). The concession, which smoldered throughout the region of Persia, gave Reuter exclusive rights and a monopoly to use for seventy years all mineral resources, including, but not limited, coal, iron, copper, lead and oil, and the construction and operation of roads, railways, telegraph lines , water channels, irrigation systems and customs services. Reuter`s concession was lifted a few years later due to strong political pressure and resistance from the Tsarist government and a number of prominent Persians. Reuter never accepted the cancellation of its concession and repeatedly made claims. Finally, in Tehran in 1889, the British minister granted Reuter a new concession known as the concession of the Imperial Bank of Persia. Under the new concession, the bank had the right to use all mineral resources throughout the country, with the exception of gold, silver and other precious metals. The bank then sold its mineral rights for 150,000 pounds to a British company called Persian Mining Corporation. Ten years later, the persian mining company`s concession was cancelled due to lack of funding (Feta, p. 245-49). On March 7, 1953, a communiqué was issued in Washington that the U.S.
government considered the February 20, 1953 proposals to be fair, reasonable and consistent with the principle of oil nationalization, but on March 20, it gave a radio address in which it rejected the February 20 proposals. As a last resort, he wrote to President Eisenhower, who followed Truman, asking for financial assistance. Eisenhower`s response came in a letter Henderson sent to Moaddeq on July 3. In that letter, Eisenhower rejected Moaddeq`s request for assistance on the grounds that it would not be fair to spend U.S. taxpayers` money to help Iran, which could have access to funds from the sale of oil if a reasonable agreement was reached on compensation. This letter finally sealed the door to negotiations with Moaddeq (Bamberg, 473-87). Dr. Moaddeq`s inability to resolve the oil dispute coincided with a serious deterioration in economic conditions and a deterioration of the domestic political situation in Iran. A year after the fall of Prime Minister Mohammad Mossadegh, the British and American governments began pushing the restored Shah of Iran to negotiate with Britain over Iran held by the Anglo-Persian oil company. The British cabinet had imposed a series of economic sanctions on Iran, prohibiting the export of important raw materials to Iran.
 The boycott of Britain had become devastating as The Iranians “became increasingly poor and unhappy”.  The dispute was concluded with the entry in 1954 of a 25-year international agreement on the oil sector, which British Petroleum and the American and French oil companies made available with 40% of the ownership of Iranian oil that expired in 1979.  Under pressure from the United States, BP was forced to accept membership in a consortium of companies that would reintroduce Iranian oil to the international market. BP was founded in 1954 in London as a holding company called Iranian Oil Participants Ltd (IOP).   The founding members of the IOP included British Petroleum (40%), Gulf Oil (8%), Royal Dutch Shell (14%) and the French Oil Company (later Total S.A., 6%).