During the Middle Ages Persian and Arab merchants served as "middle men" for Europeans involved with the spice and silk trades. The perception that these "middle men" price gouged Europeans led directly to the desire to find other routes to access the markets in the Far East. If these alternate routes could be found, Europeans could negotiate directly with their Asian counterparts. This exploration led to the identification and settlement of North and South America. As to avoiding the "Persian passage", the best route navigators of that time could identify was sailing around the southern end of Africa - a very time consuming course.
With the end of the reign of the Persian and Arab "middle men", the rivalry found a new trend. The West began investing in the pearl industry, and the most plentiful source of pearls was the Persian Gulf - which was not entirely controlled by Persia. The Arab Sheikdoms agreed to invoke a truce among themselves and Persia during pearl diving season. As the Sheikdoms gained wealth from these ventures, the truce became permanent.
Why did Persia have so many conflicts with its neighbors? The answer can be read in one word: Islam. The Suni and Shiite sects of Islam have been in a sort of perpetual feud since the eighth century AD. Persia/Iran is predominately Shiite; some of the neighboring Sheikdoms are associated closely with the legacy of the Suni caliphs. The permanent truce among these entities was not a resolution of this controversy. It was instead a more tangible attribute of the power of the prospect of monetary wealth.
During the first half of the twentieth century Iran and the West were on quite amicable terms. That situation was slightly damaged in 1953 when the American CIA briefly intervened to oust the elected Musidek regime and subsequently installed the Shah. During his twenty-five years rule, the Shah was perceived by many Iranians as an overt tool of the west and the US in particular. In 1979 when the Ayatollahs and Mullahs took charge of the country, any tools of the West existing in Iran were obliterated.
With the new Islamic government, the old rivalry resumed. The US/Iran Claims Commission was established to settle the issue of compensating individuals and businesses whose property was confiscated after the Iranian revolution. The Claims Commission still attempts to perform this function.
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