Contextual Assessment of the D’Arcy Oil Concession The d’Arcy oil concession of 1901 in Persia (now Iran), represents a big moment in Middle Eastern politics and economics. The first oil concession in the region of the Middle East, this became the model for future concessions for the next half-century (Gelvin, 88, 172). In 1901, Mozaffar ad-Din, the Qajar Shah of Persia, sold the rights to exploring for, excavating, and selling oil for 60 years in all of Persia to a British investor, William Knox D’Arcy. For this, the Shah received £20,000 sterling cash, £20,000 sterling of shares of the company, and 16% of annual net profits (Gelvin, 174). Few parts of Persia were not included, like holy sites and some small, northern provinces (Gelvin, 173). This concession was a major factor in what led to modern day Iran. It highlights the unrest of the Persian people and the imperial struggle over Persia. Persians were growing dissatisfied with the Qajar rule. Influenced by western-oriented reformers, merchants, and religious leaders, they took to the streets in 1905. These protests and demonstrations would continue to 1911. The sources of their unrest came from the excesses of Qajar rulers, the weaknesses of the government, and foreign control over their economy. Also, the general consensus was that the Qajar rulers, especially Mozaffar ad-Din, were totally incompetent. These protests led to the Shah’s concession and Persia’s first constitutional monarchy. Because of the government’s reliance on foreign loans and concessions, the first Fundamental Law was that the legislature approve all loans (Aksan, 2016).
The d’Arcy concession represents a tipping point for the Persian people. They had clearly grown uneasy with the government’s spending and poor representation of their interests. It is important to note that the Qajar dynasty gave large religious freedom to their