British Diplomatic Oil Crisis: Contemporary Anglo-Saxon Geopolitical Rivalries in the Persian Gulf: Drawing a Lesson? Or Sir Anthony Eden‘s Delusion of Grandeur.

In the
face of the opposition and the split in the Majlis, instead
the Prime Minister organised a referendum. This referendum was held
in Teheran at the beginning of August 1953, put directly to the
people. The result of the referendum was an overwhelming vote of
approval for Musaddiq. The opposition deputies declared the
referendum illegal and that it had bypassed the Majlis.

On August
12th 1953, Musaddiq announced that in conformity with the
referendum he intends to dissolve the Majlis.15

The
opposition deputies took possession of the Majlis. The Shah
dismissed Musaddiq. In place of him General Zahedi was appointed as
the new Prime Minister, and the Commander-in-Chief of the army.
Musaddiq refused to step down, the Teheran mob agitated for a
republic, and the Majlis was declared dissolved. The Communist
party, or the Tudeh party, in Iran backed Musaddiq and called for a
People’s Democratic Republic. At the same time ‘the Russians
announced that they would aid Iran.’ 16

Musaddiq’s allies however became disillusioned and turned against
him. In their view:

he held a
referendum and won a victory of Soviet proportions,
sealing his apparently total dominance. But he was no longer
pursuing the policies to which he had devoted his life. Defender of
the constitution against the Shah, he was now allied with street
mobs to overthrow the constitution; opponent of foreign influence,
he was now backed by the Tudeh and their Soviet sponsors.17