This case concerned the nationalization of Iran's oil which had been, in large part, controlled by the United Kingdom since the early 20th century.

The ICJ quickly issued a temporary ruling, proposing to supervise the operations of the oil company by a board of 5 — two from each state and a fifth from a third — until the legal question had been resolved.

The UK accepted, whereas Iran declined as a matter of principle, arguing that the ICJ had no jurisdiction over this case.

Despite the outcome of the case, the British government was determined to both reclaim control of Iran's oil fields and signal to other countries that nationalization efforts would lead to retaliation.

Mohammad Reza Shah returned to Iran, solidified his authority backed by the U.S., and allowed a mix of foreign companies to control pricing and production in the oil sector for another 20 years, though with some increase in domestic revenue.