Furthermore, closer relations with Moscow helped Iran improve its position in regional disputes and reduce tensions along its northern borders.
The policy also served domestic political purposes. The Shah could present his government as pursuing an independent foreign policy that prioritized national interests rather than simply following the instructions of Western governments.
Nevertheless, the development of Iranian-Soviet relations did not indicate a fundamental ideological transformation. Iran remained a close partner of the United States and continued to participate in Western security arrangements.
Rather, the Shah pursued a strategy of diplomatic diversification. He sought to obtain economic benefits from cooperation with both superpowers while maintaining the political and military advantages of his relationship with Washington [107].
9. Oil Diplomacy and the Emergence of Iran as a Regional Power
The expansion of Iran’s oil production and the growing importance of petroleum in the global economy significantly strengthened the Shah’s international position.
During the 1960s and early 1970s, Iran experienced substantial increases in oil production and revenue. The Shah recognized that petroleum was not merely an economic resource but also an important instrument of foreign policy.
Through the Organization of the Petroleum Exporting Countries (OPEC), Iran participated in negotiations concerning production levels, oil prices, and the distribution of revenues between producing countries and international oil companies.
