This article examines the oil nationalization crisis in Iran between 1951 and 1953, and the role of the U.S. Ambassador to Iran, Loy Henderson, in these events. Henderson’s tenure marked a critical period in U.S.- Iran relations, during which significant events occurred, such as the nationalization of Iran’s oil, the expulsion of the Anglo-Iranian Oil Company (AIOC) from Iran, and the subsequent coup against Mosaddegh. The nationalization of oil and the 1953 coup against Mosaddegh have attracted considerable attention from researchers, resulting in numerous studies on the subject. However, most of these studies focus on the policies of top decision-makers in the U.S. and Iran. In contrast, the role of U.S. Ambassador to Iran, Loy Henderson, who served between 1951 and 1954, has not received sufficient attention. Henderson sought to resolve the oil crisis diplomatically in line with U.S. interests, but he was unable to reach an agreement between the UK and Iran. Despite this, Henderson played an active role in the economic pressure applied to the Mosaddegh government and the 1953 coup against Mosaddegh. This study examines Henderson’s role in U.S.-Iran relations during the oil crisis of 1951-1953, focusing on this topic through FRUS archival documents and an interview with Henderson conducted as part of the Oral History project at the Harry S. Truman Library and Museum. The article argues that Henderson played a key role in resolving the oil crisis in line with U.S. interests. Henderson actively defended American interests in Iran, maintained relations with the Iranian government and the Shah, contributed to shaping U.S. policy in Iran, played an important role in the overthrow of Mosaddegh, in transferring control of Iranian oil to Western companies, and in the Shah’s return to power and the strengthening of his monarchy.