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

answer
within two weeks to his proposals that have been explained,
the residence permits of the Anglo-Iranian Oil Company staff in Iran
would be cancelled. The British Government, therefore, in the face
of his ultimatum, decided to demonstrate to the Iranian deputies and
people that it had abandoned hope of being able to reach a
settlement with Musaddiq. This in effect was intended to undermine
Musaddiq’s government. In other words, if the Iranians wanted a
settlement it was for them to withdraw their confidence in Musaddiq
and ensure his resignation. On 5th September the British Government
announced that they regarded the negotiations between themselves and
the Iranian Government as definitely broken off. The following
measures had been contemplated should the talks fail:

1. A sterling control
   order, the effect of which would be to
   deny Persia the special facilities she at present receives
   in regard to sterling transferability and convertibility
   into dollars.

2. A ban on export from
   the UK to Persia of certain scarce
   commodities, e.g. steel and sugar.22

On 10th September 1951 it was decided to

Withdraw
certain special benefits which had previously been given to
Persia in view of the advantages to the United Kingdom economy
drawing from Persian oil supplies. These measures, which were
designed to protect the United Kingdom economy and were not
retaliatory, limited Persia’s facilities in the use of sterling and
the purchase of certain scarce goods. As a corollary cargoes of
scarce goods en route to Persia, amounting to 3,000