Drawing on a variety of archival and published sources, I show that while the Baathist coup forestalled a burgeoning oil nationalization movement in Iraq, U.S. foreign policy-makers were unable to develop a clear and decisive response to the emerging Baathist regime in Iraq. Despite repeated overtures from Baathist leaders seeking American support between 1968 and 1970, American policy-makers remained divided amongst themselves. One faction advocated embracing the Baath as means of stabilizing western oil interests in the region. An opposing faction perceived the Baath as a potential ally of the Soviet Union and a threat to Israel.
American fears of Baathist-Soviet alignment proved a self-fulfilling prophecy, as the American refusal to accommodate the Baath, led the government in Baghdad to seek Soviet support. Drawing on this support, the Baath nationalized the Iraq Petroleum Company (IPC). I argue that this development did indeed undermine the structure of American power in the region.
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