ABSTRACT

Presently the world watches the unfolding political panorama of US and Iran relations without understanding the basic compelling issue(s) propelling their present relations. While the world global media follows suit in condemning Iranians in consonance with US State department declaration of Iran as a state sponsor of terrorism. The UN has surmised therefore, that the present and greatest threat to the world peace is the degenerate relationship between the two countries. Thus, this study is structured to critically expose the intrinsic intention behind US increased role in Iran. To achieve this, the study raised two research questions: (i) Do the national interests of U.S and Iran play a significant role in determining their relations? (ii) Is there a positive relationship between oil and the U.S interest in Iran? The study anchored analysis on the political-economic paradigm to explicate more facts on the data. Data for the study was primarily secondary sources and our research design was non-experimental. The research work was divided into five chapters and hypotheses which stated: (i) the national interest of US and Iran play a significant role in determining their relations. (ii) There is a strong positive relationship between oil and US interest in Iran, were validated by the empirical indicators of U.S advent pursuit of oil within the region and also by the deterministic influence of U.S interest in Iran, which has been discovered to be intransigence with Iran. (Validation of hypothesis was done in chapters one and five) The study thus advocates that normalization of relations between both will definitely ensure trust which has since dissipated following Iran’s revolution.

TABLE OF CONTENTS

Title Page – – – – – – – – – – i Approval Page – – – – – – – – – ii Dedication – – – – – – – – – iii Acknowledgment – – – – – – – – iv Abstract – – – – – – – – – – v List of Tables – – – – – – – – – vi

List of Figures – – – – – – – – – vii
Table of Contents – – – – – – – – viii
CHAPTER ONE: INTRODUCTION
1.1 Introduction – – – – – – – – 1
1.2 Statement of Problem – – – – – – – 6
1.3 Objective of Study – – – – – – – 11
1.4 Significance of Study – – – – – – – 11
1.5 Literature Review – – – – – – – 12
1.6 Theoretical Framework – – – – – – 26
1.7 Hypothesis – – – – – – – – 31
1.8 Method of Data Collection – – – – – 31
1.9 Method of Data Analysis – – – – – – 32
CHAPTER TWO: THE HISTORY OF U.S-IRANIAN RELATIONS
2.1 Early Political Relations between U.S and Iran. – – – 33
2.2 The Politics of Oil – – – – – – – 35
2.3 The 1979 Revolution and Hostage Crisis – – – – 38
2.4 Iran-Contra Affair – – – – – – – 41
2.5 Commercial Relations between U.S and Iran – – – 45
2.6 Iran’s Nuclear Programme and Global Stability – – – 48
2.7 Chronology of Events – – – – – – – 52
CHAPTERTHREE: DETERMINANTS OF U.S-IRANIAN RELATIONS
3.1 Introduction – – – – – – – – 56
3.2 U.S Interest and Iran’s Nuclear Programme – – – 58
3.2.1 U.S Position – – – – – – – 60
3.2.2 Recent Iranian Face Off – – – – – – – 66
3.3 Security Issue: Iran and the Act of Terrorism – – – 72
CHAPTER FOUR: THE U.S AND POLITICS OF OIL IN IRAN
4.1 Introduction – – – – – – – – 78
4.2 The Strategic Importance of Oil to U.S – – – – 80
4.2.1 Oil in Pre-revolution Iran – – – – – – 82
4.2.2 Post-Revolution and Oil Business in Iran – – – – 86
4.3 Oil and Economic Relations between U.S and Iran – – 96
4.3.1. Trade Balance following Restricted Investment in Iran’s
Oil Sector and Economy – – – – – – 102
4.4 Oil Hegemony – – – – – – – – 108
4.5 The Effects of U.S Oil Embargo on Iran.- – – – 111
CHAPTER FIVE: SUMMARY, CONCLUSION AND
RECOMMENDATION
5.1 Summary – – – – – – – – – 115
5.2 Conclusion — – – – – – – – 118
5.3 Recommendations – – – – – – – 121
Bibliography

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