In the mid-20th century, Asia and Africa witnessed a strong wave of anti-colonial struggles, leading to the independence of many countries. The British-controlled puppet regime of the Faisal dynasty in Iraq began to falter.
“It was almost a destitute country at that time. Everyone lived in poverty and hunger. Against this backdrop, revolution erupted,” recalled Hussein Ali Saeed, a retired Iraqi oil worker.
On July 14, 1958, gunfire rang out in Baghdad as Abdul Karim Qasim staged a coup and overthrew Faisal II, establishing the Republic of Iraq and ending British control.
“Taking back stolen wealth” became the new republic’s rallying cry, with eliminating oil colonialism as a primary goal. In 1959, Iraq established its Ministry of Oil to manage national oil affairs. However, despite these efforts, the Seven Sisters controlled over 80 percent of the world’s oil reserves, enabling them to manipulate oil prices.
To break free, Iraq sought alliances with Third World countries. In September 1960, representatives from Venezuela, Saudi Arabia, Kuwait, and Iran met in Baghdad at Iraq’s invitation, establishing the Organization of Petroleum Exporting Countries (OPEC) to protect member countries’ interests and ensure stable oil market prices.
On June 1, 1972, the Iraq National Oil Company nationalized the Western-controlled Iraq Petroleum Company. This move triggered a wave of nationalization that quickly spread to Kuwait, Venezuela, Saudi Arabia, and other countries.
In October 1973, during the Yom Kippur War, oil producers in the Middle East announced an oil embargo against Western nations supporting Israel. OPEC seized this opportunity to reclaim oil pricing power, raising oil prices from $5.12 to $11.65 per barrel in December.
For the West, this oil crisis ended the golden age when oil was cheaper than water. With soaring oil prices, Iraq entered a period of rapid development. By 1979, its per capita GDP surged from $392 at the start of oil nationalization to $2,858.
“Economy, society, science, and culture all flourished. Education and healthcare were assured. Our wages increased, savings grew, and many families bought cars and even traveled or studied abroad,” Hussein recalled. This period was marked by prosperity and growth for Iraq.