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When Israel and Iran were friends — and built a secret oil pipeline

March 04, 2026 5 min read International Relations Modern History Geography GS1 (Modern History World History Post-1945) GS2 (International Relations West Asia)
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What Happened

  • As the current Iran-Israel conflict intensifies, the historical background of the two countries' once-close alliance and their secret jointly-built oil pipeline offers crucial context for understanding how dramatically West Asian geopolitics has shifted.
  • Until 1979, Iran under Shah Mohammad Reza Pahlavi was one of Israel's closest strategic partners — supplying up to 85% of Israel's oil requirements and co-managing a secret cross-Israel pipeline.
  • The Eilat-Ashkelon Pipeline, built in 1968 as a 50/50 joint venture, was designed to transport Iranian oil from the Red Sea port of Eilat to the Mediterranean port of Ashkelon, bypassing the politically contested Suez Canal.
  • The 1979 Iranian Islamic Revolution abruptly ended this partnership; the pipeline company continues to operate under Israeli control, shrouded in a court-ordered confidentiality agreement.

Static Topic Bridges

Israel's "Periphery Doctrine" and Cold War Era West Asian Alliances

The "Periphery Doctrine" (Hebrew: Bri't HaPeriferia) was a foreign policy strategy conceptualised by Israeli Prime Minister David Ben-Gurion in the late 1950s, implemented through the intelligence services (primarily Mossad) under Director Isser Harel. The doctrine recognised that Israel was encircled by hostile Arab states and sought to build alliances with non-Arab states on the "periphery" of the Arab world — states that shared an interest in containing Arab nationalism and Soviet influence.

The core periphery alliance partners were: Iran (under the Shah), Turkey, and Ethiopia. Later, this framework also incorporated Kurdish nationalist movements in Iraq. The doctrine was explicitly non-public and operated through intelligence-to-intelligence contacts rather than formal diplomatic channels.

  • Ben-Gurion viewed the Arab-Israeli conflict as distinct from Israel's relations with non-Arab Muslim or African states, enabling pragmatic partnerships.
  • Iran under the Shah was a key US Cold War ally in West Asia (the "Twin Pillars" policy of the Nixon administration paired Iran and Saudi Arabia as regional security guarantors).
  • The Periphery Doctrine's success depended on the Shah's regime — its collapse in 1979 eliminated the entire strategic architecture simultaneously.
  • Golda Meir (then Foreign Minister, later Prime Minister) personally led negotiations with Tehran over the pipeline project in the 1960s, demonstrating the diplomatic weight Israel assigned to the relationship.

Connection to this news: The current Iran-Israel conflict is in many ways the full inversion of the Periphery Doctrine era — the same countries that once shared intelligence and oil infrastructure now directly exchange missile strikes, illustrating how alliance structures in West Asia are shaped by regime type, not geography or historical precedent.

The Eilat-Ashkelon Pipeline Company (EAPC) and the Suez Canal's Geopolitical Role

The pipeline — officially the Trans-Israel Pipeline — was built in 1968 as a 254 km crude oil conduit running from Eilat on the Gulf of Aqaba (Red Sea) to Ashkelon on the Mediterranean Sea. Its strategic purpose was explicitly to bypass the Suez Canal, which Egypt had nationalised in 1956 and periodically closed to Israeli-bound shipping.

The Eilat-Ashkelon Pipeline Company (EAPC) was established as a joint Israeli-Iranian entity with 50% shareholding each, operating through a web of shell companies under a veil of secrecy. A confidentiality order (still in force) prevents disclosure of the agreement's details — making it one of the more unusual surviving Cold War-era intelligence-adjacent commercial arrangements.

  • The Suez Canal, nationalised by Egyptian President Gamal Abdel Nasser in 1956, was closed to Israel-bound shipping from 1948 to 1975 under Arab League boycott protocols.
  • The 1956 Suez Crisis (Israel, UK, France vs Egypt) and the 1967 Six-Day War both disrupted Suez Canal operations, demonstrating the canal's vulnerability as a trade route.
  • After 1979, Iran demanded return of its 50% stake; Israeli courts declined, citing the frozen nature of relations.
  • The UAE-Israel Abraham Accords (2020) gave the pipeline new commercial relevance: UAE oil could transit through Eilat-Ashkelon to European markets, bypassing the Suez Canal for UAE exporters.
  • EAPC today operates as a commercial entity under Israeli control, handling oil transit for multiple countries.

Connection to this news: The pipeline's history illustrates how infrastructure built for geopolitical purposes outlives the political arrangements that created it — and how the same corridor between Gulf and Mediterranean retains strategic value regardless of which states are aligned at any given time.

The 1979 Iranian Islamic Revolution and Its Regional Impact

The Iranian Islamic Revolution of February 1979, which overthrew Shah Mohammad Reza Pahlavi and established the Islamic Republic under Ayatollah Ruhollah Khomeini, was one of the most consequential geopolitical events of the 20th century. It restructured the entire West Asian strategic landscape in ways that persist today.

Key geopolitical consequences included: the end of US-Iran alignment; the end of Israel-Iran cooperation; the emergence of Iran's "axis of resistance" doctrine (supporting Hezbollah in Lebanon, Hamas in Gaza, Houthi forces in Yemen, and various Iraqi militias); and the onset of the Iran-Iraq War (1980-88), which further destabilised the region.

  • The Pahlavi dynasty (est. 1925 by Reza Shah) was the last monarchy of Iran; the 1979 revolution replaced it with a theocratic system governed by the principle of Velayat-e-Faqih (Guardianship of the Islamic Jurist).
  • Iran immediately severed diplomatic relations with Israel after the revolution; Khomeini designated Israel as an "occupier" and called for its elimination.
  • The 1979 revolution also ended Iran's close cooperation with the United States, which had supported the Shah. The Iran hostage crisis (1979-81) — 444 days of US diplomats held captive — cemented the rupture.
  • The Islamic Republic established the Islamic Revolutionary Guard Corps (IRGC) as a parallel military force — the same organisation that today controls Iran's missile programme and the Quds Force that operates abroad.

Connection to this news: The killing of Iran's Supreme Leader (the successor to Khomeini's role as Vali-e-Faqih) in the 2026 conflict, and Iran's retaliatory strikes on Israel, can be understood as the culmination of the strategic trajectory set in motion by the 1979 revolution — the full replacement of the Periphery Doctrine alliance with an existential confrontation.

Key Facts & Data

  • Eilat-Ashkelon Pipeline built in 1968 as a 50/50 Israel-Iran joint venture.
  • Pipeline length: 254 km; connects Red Sea (Eilat) to Mediterranean (Ashkelon).
  • Iran supplied up to 85% of Israel's oil before 1979.
  • Israel's Periphery Doctrine: conceived by Ben-Gurion in the 1950s; key allies were Iran, Turkey, Ethiopia.
  • 1979 Iranian Islamic Revolution: ended Shah's rule, established Islamic Republic under Khomeini.
  • Iran's Velayat-e-Faqih (Guardianship of the Islamic Jurist) is the constitutional basis for Supreme Leader's authority.
  • 2020 Abraham Accords: UAE, Bahrain, Sudan, Morocco normalised relations with Israel — gave EAPC new commercial role for UAE oil transit.
  • The Suez Canal was nationalised by Egypt's Nasser in 1956; closed to Israel-bound shipping 1948-1975.
  • IRGC (Islamic Revolutionary Guard Corps) established after the 1979 revolution as a parallel military force to the regular army.